AVG Thailand has delivered impressive performance by rising into the top 3 digital marketing service providers for China in Thailand within its first year after launch. This success is driven by its expertise and full-service experience in providing total digital marketing solutions for the Chinese market, along with a solid client base of more than 60 companies. The company also highlights “Social Commerce” and “Influencers Marketing” as secret weapons for building Thai brands in the Chinese market.

AVG Thailand Rises into the Top 3 Digital Marketing Service Providers for China

Ms. Chadakorn Tanasuwankasem, Chief Executive Officer of AVG Thailand Co., Ltd., a leading digital marketing expert in China at the forefront of Asia under YDM Thailand Co., Ltd., said that AVG began operating as a digital marketing service provider in Shanghai, China, in 2007 and currently has branches in Singapore, Malaysia, Cambodia, Vietnam, and Dubai. In Thailand, AVG Thailand is a new player that entered the field around the end of 2017 and will celebrate its second anniversary later this year. However, with the company’s strong client base and good support from YDM Thailand, it was able to rise into the top 3 Chinese digital marketing service providers in Thailand within its first year. At present, the company serves 60 clients, ranging from leading Thai public companies such as Kasikornbank to startups such as Sesamilk, which recently won the Thailand Innovation Award.

AVG Thailand Rises into the Top 3 Digital Marketing Service Providers for China

“AVG Thailand is the first company to become an Authorized Partner of China’s three digital media giants—Baidu, Alibaba, and Tencent—which are powerful media platforms for digital marketing in China. Of course, we have a strategic team that truly understands Chinese consumer behavior and the rapidly changing digital world in China. At the same time, we understand Thai brands and recognize the differences needed to present them effectively to customers in China. For example, AVG often does not recommend that clients use media that is extremely popular in China if it does not meet their business objectives in that market. We always work as a team with clients to create effective results,” Ms. Chadakorn said.

Importantly, this year AVG Thailand has two secret weapons to strengthen brand building in the Chinese market: Influencers Marketing and Social Commerce. Regarding Influencers Marketing, AVG Thailand’s management stated that influencer marketing has become a key component of marketing strategy in China. According to Frost & Sullivan, sales generated by Chinese influencers reached 32.9 billion yuan (USD 4.9 billion) in 2017 and are expected to achieve a strong compound annual growth rate of 40.4% over the next five years. In addition, 80% of influencer followers are millennials—people born between 1981 and 1996 (aged 23–38)—who are the group with the highest purchasing power in China. Therefore, the question is no longer whether brands should work with influencers, but rather how and when they should collaborate.

AVG Thailand Rises into the Top 3 Digital Marketing Service Providers for China

“AVG Thailand’s marketing strategy in China is not based simply on choosing influencers with large fan bases. Instead, AVG selects influencers that match the strategy being planned by creating motivation between the influencer and the brand or product, allowing them to create content in their own style rather than forcing information unnaturally. AVG often chooses to work with experienced influencers who know what types of content will best attract and be well received by their followers,” the CEO of AVG Thailand said.

Another new service to watch is Social Commerce, which builds on the strong response to influencer marketing in creating brand awareness. It combines social media and e-commerce to create demand for products. For example, a Chinese woman searching for a new outfit for a date may find many fashion items on Taobao, China’s largest e-commerce platform, but be unable to decide which one to buy.

Meanwhile, an influencer she follows on Weibo posts a review of 10 makeup and fashion looks for this summer, along with discount coupons linking to an online store. In this case, there is a high chance that she will buy both the red skirt worn by the influencer and the cosmetics recommended as must-have items. Today, China has many mobile applications for social commerce, such as Red Book and Pinduoduo. In addition to influencers, the word “social” here also includes social media groups such as WeChat Groups, real users, and friends on social media.

As for digital marketing trends in China in 2019, AVG Thailand’s CEO analyzed that Social Commerce will increasingly meet the needs of both buyers and sellers because major social media and e-commerce players are working together more closely. For example, Alibaba has partnered with Weibo, while WeChat is partnering with JD.com to create advertising systems that can target consumer needs more clearly, such as analyzing purchase history on e-commerce platforms together with the pages consumers follow on social media. In terms of content format, video is the strongest growing trend.

This can clearly be seen in the fact that Chinese people spent 7% more time watching videos in 2018. In addition, 5G technology is another important factor that will drive major change in digital marketing in China, because the speed of 5G allows many things around us to connect to the internet. As a result, digital marketing will no longer exist only on mobile phones and computers. For example, before the eggs in your refrigerator run out, the LED screen on the refrigerator may display an advertisement for eggs. After you place an order, the e-commerce system can deliver the eggs to you within 30 minutes. The relationship between consumers and advertising will improve because advertising will no longer be a forced sales push, but rather a timely and relevant offer that matches real consumer needs.

For popular Thai products, data from Tmall, China’s largest B2C e-commerce platform, and Taobao, China’s largest C2C e-commerce platform, showed in May 2019 that the best-selling products from Thailand were skincare and cosmetics, dried fruit, and rice, with a total transaction volume of approximately 2 million purchases per month.

AVG Thailand Rises into the Top 3 Digital Marketing Service Providers for China

Regarding Chinese tourists traveling to Thailand, Ms. Chadakorn added that Thailand remains the number one overseas travel destination for Chinese people, especially during major Chinese holiday periods such as China’s National Day and Chinese New Year. However, there are also tourism-related business trends in Thailand that we should understand, such as women being the main decision-makers for overseas travel, the largest tourist group being aged 29–39, family trips being the main reason for overseas travel, and premium travel becoming more popular, such as staying in 4–5 star hotels and traveling in private groups.

Ms. Chadakorn also advised how Thai businesses should adapt during the current economic slowdown caused by the China–US trade dispute. Entrepreneurs should look for business opportunities in “New Tier One” cities—cities with strong growth potential that are moving toward Tier One status in China. They should also study the advantages offered by the ASEAN-China Free Trade Agreement (ACFTA), since in 2018 only 68.4% of Thai exports to China benefited from this agreement. In addition, they should register trademarks in China to protect Thai brand owners’ rights and choose the right digital marketing channels that fit their budgets and target the correct audiences.

China is Thailand’s number one export market, with export value reaching THB 960 billion, representing an 11.9% market share, followed by the United States and Japan. Clearly, China is an important opportunity for Thai investors because it is a large market with enormous purchasing power. At the same time, Chinese tourists account for as many as one in three foreign visitors traveling to Thailand. In 2018, the figure was approximately 10.5 million people, increasing by 8–10% each year, with Chinese tourist spending in Thailand amounting to about THB 51.38 billion, up 4.5% from the previous year (Kasikorn Research Center).

AVG Thailand Recommends That Entrepreneurs Choose Digital Marketing Channels in China That Match Their Target Audience and Budget

AVG Thailand was founded through a collaboration between AVG, one of Asia’s leading experts in digital marketing in China, and YDM Thailand, one of Thailand’s leading digital marketing solution companies.

It was established to meet the needs of clients seeking to expand their businesses into China, reach Chinese tourists traveling to Thailand, and attract Chinese investors. Its strength lies in providing Total Digital Marketing Solutions to clients. In addition to being an expert in digital marketing in China, it is also the first company to become an Authorized Partner of China’s three digital media giants—Baidu, Alibaba, and Tencent—which are a powerful force in marketing in China. It also has a network of more than 100,000 Chinese influencers in its database, ready to promote businesses in China effectively.