With the explosive growth of the mobile Internet, smartphones and portal terminals have become new tools for marketers, including lubricant suppliers, to promote products. Industry observers say Chinese lubricant companies are looking for ways to reach potential customers through social media.
Developers of software such as smartphone applications appear to be doing their part to help. Witness China Lubricant Companies, a mobile phone application recently developed by Chinese businessman and app creator Xia Jing. The application offers a directory of engine oil suppliers, along with information about supply and demand, trade fairs, company promotions and industry news. It even has a forum where users can seek answers to questions about lubricants.
Through the application, potential customers will be directed to the companies official websites for purchases, which could help increase sales, Jing said. China Lubricant Companies differs from engine oil apps developed for individual companies insofar that it lists and links to multiple brands.
Use of mobile apps generally costs less than promotion through more traditional media such as newspapers and television. Proponents say it is also a more direct way to reach targeted customers and that it serves as a medium for interaction between companies and consumers. Compared to television advertising, Jing told Lube Report Asia, app marketing is significantly more effective at influencing buying decisions.
But probably the biggest reason for the growing interest in marketing through mobile apps is the size of the potential audience. Statistics released this year by International Data Corp. indicate that China has nearly 1 billion mobile phone users, and roughly 40 percent of them use smartphones. CNIT-Research, a Chinese software and internet research firm, found China has over 300 million mobile Internet users, and 96 percent of smartphone users browse the Internet on their phone.
In the era of the mobile internet, an engine oil company that can take the lead in efficient mobile marketing solutions and seize the initiative to own the mobile channel is likely to win in the face of fierce competition, Jing said.
In the Apple and Android app stores, there are about 36 Chinese applications related to engine oil, including apps launched by marketers such as Sinopec, Schneider Gesite, Shell and Bosch, as well as some local distributors.
Chinese consumers choices are still greatly influenced by a brand of engine oil that implies quality, said Jingjing Han, a lubricant industry analyst at Beijing-based S&P Consulting. Domestic lube companies not only have to ensure their products meet consumer demands for quality, but also have to strengthen market development and brand building.
Companies trying to build a brand image can learn a lot from the examples of top international marketers, Han said. But some Chinese companies are also finding success in social media. Sinopec was the pioneer among domestic lube suppliers. In March 2010 it became the first Chinese company to develop a store on the online shopping site Taobao, and it was also the first to launch an official site on Weibo, a Chinese version of Twitter. Sinopec now has 140,000 followers on Weibo. Some say these social media initiatives deserve some credit for the popularity of the companys Justar line of engine oils.
Smaller companies have also found innovative ways to leverage social media. Han cited the example of Jiangsu Lopal Tech Co., a Nanjing-based lube blender that adopted a multi-pronged promotional campaign that included sites such as Weibo and Weichat. Lopal gained a moment of fame when a video of a stunt car jumping the Amur River became a sensation on Youku, a video hosting site. The stunt car bore Lopals logo.
Han said mobile apps have become one of most influential sources of information in China. Thanks to their popularity among young consumers, apps have become the first choice for many companies seeking to increase their sales and marketing reach.
More domestic companies are developing e-commence strategies. Qi Yao, chief executive officer of Beijing-based Zhonghua Lubricant, said e-commerce has been elevated to a core part of his companys strategic planning in 2014. He said Zhonghua will speed up construction of its business-to-consumer e-commerce channel this year. The company already has an official WeChat platform, a messaging application, for e-marketing and communication with clients.
Guangzhou Jetsun, a subsidiary company of Guangzhou Mechanical Engineering Research Institute, also considers e-commerce an important channel for sales in future, said Hui Xiang, vice general manager. Jetsun plans to combine an e-commerce channel and physical stores for its future model, Xiang added.
Traditional media may be losing ground, but in China they still have an important resource that internet media lacks – the right to release news, said Han. Currently commercial websites get their news from newspapers, television and other traditional media, she explained. She contended that companies should focus not only on app development, but also on coordinating use of new and traditional media.