{"id":8401,"date":"2021-08-16T07:00:24","date_gmt":"2021-08-16T07:00:24","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=8401"},"modified":"2025-04-23T09:51:10","modified_gmt":"2025-04-23T09:51:10","slug":"how-chinas-tech-crackdown-is-impacting-marketing-strategies-for-consumer-brands","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/how-chinas-tech-crackdown-is-impacting-marketing-strategies-for-consumer-brands\/","title":{"rendered":"How China\u2019s Tech Crackdown is Impacting Marketing Strategies for Consumer Brands"},"content":{"rendered":"

With tech, gaming and education companies out of favour with investors, consumer brands like Perfect Diary and HeyTea are capturing the hearts of venture capitalists and private equity firms, writes Mark Tanner from The China Skinny<\/a><\/h2>\n

A scan down the US rich list reveals a gaggle of technocrats from Seattle and Silicon Valley. Warren Buffet, at number four, is the only name in the top nine who doesn\u2019t fit that description (although seventh-placed Elon Musk left Silicon Valley late last year).<\/p>\n

The richest in China<\/a>, whilst still tech-heavy, are a little more diverse. Just five of the top 10 are technocrats and more than half have built their businesses outside of the tier-one cities. The richest man, Zhong Shanshan, made his billions selling Nongfu Spring bottled water, and number eight, Qin Yinglin, breeds pigs for a living.<\/p>\n

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If becoming super-rich is your goal \u2013 which it is for many Chinese \u2013 the likelihood of making your fortune through a tech company is more remote than it was before. Many of the young and ambitious are now aspiring to be the next Zhong Shanshan, rather than the next Jack Ma \u2013 making their fortune from consumer goods.<\/p>\n

Beijing once placed tech firms on a pedestal \u2013 they could do no wrong. Gregarious ex-teacher Jack Ma was the poster child for what hard work and a little savvy could do for you in the new China. Leadership in the tech space would enable China to become a high-income economy.<\/p>\n

The new China has moved on and is now more multi-dimensional. Beijing is more confident than ever, not feeling like it needs to prove itself to the world by showcasing successful entrepreneurs as it once did. In fact, there is barely a tech firm that hasn\u2019t been impacted by government crackdowns in the way Alibaba<\/a> and its Ant Financial has been since last November. The most recent was Didi<\/a>, China\u2019s Uber, which was blasted by Beijing just after its IPO in the US, wiping $2 trillion off the value of Chinese stocks in the US. China\u2019s tech entrepreneurs, once talismans, are now acting sheepishly. Investors are spooked, and with less money available, the allure to join the tech brigade is fading for many of China\u2019s best and brightest.<\/p>\n