Spotlight on China - media and entertainment

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China has emerged as an economic powerhouse. In efforts to continue its growth, China is looking to its “cultural sector,” which includes M&E, to become a stronger engine of its economy.

The government is easing restrictions and encouraging investment. This, combined with the rapid rise in digital, offers significant growth opportunities in China for M&E companies.

“Every global strategy needs to include China.” — David McGregor, Asia-Pacific M&E Leader

Although the challenges for M&E companies seeking to penetrate or expand their market presence in China remain significant, the market’s potential is too vast to ignore.

Building a roadmap for success

We have identified four key factors that can help M&E companies build a roadmap for success in China.

Build strong brands

  • Align brand strategy with core market segments
  • Emphasize the brand’s story and quality
  • Localize brands
  • Use the power of social to build relationships
  • Adapt to changing market dynamics

Succeed in digital

  • Select partners that support digital distribution objectives
  • Foster a culture of innovation
  • Anticipate and adapt to changing mobile consumption habits
  • Use data to develop insight into consumer behavior
  • Experiment with evolving monetization models

Form and operate successful partnerships in China

  • Align the scope of joint ventures (JVs) and the company’s strategic objectives in China
  • Embed the JV’s long-term goals and governance model in the partnership agreement
  • Develop JV corporate infrastructure to support both traditional and digital media
  • Establish a trust-based approach to management and be sensitive to cultural nuances
  • Consider the impact of a JV exit, buyout or IPO on your short- and long-term goals

Navigate the regulatory landscape

  • Make regulatory considerations a core pillar of growth strategy and operations
  • Identify and develop relationships with key regulatory stakeholders
  • Engage reputable local advisors to help guide regulatory interpretation
  • Continuously assess evolving regulations to identify opportunities and risks
  • Factor visible and hidden compliance costs in your business and operating plans

Considerations for doing business in China

The Chinese government, as part of its 12th Five-Year Plan, is relaxing regulations for investment in some M&E sectors. Change has been protracted, but it is gaining momentum.

Given its geographic size and economic importance in driving future global demand, investing in China is not a short-term endeavor. Any consideration of China has to be embedded into a global business strategy with a multi-year horizon.

M&E companies need to understand and anticipate both the complexity and the enormous possibilities. Companies with the agility, adaptability and patience to make a long-term commitment to the market will be best positioned to succeed.

“China presents huge opportunities for global M&E companies, but to reap the benefits requires careful planning and execution.” — John Nendick, Global M&E Leader

Key M&E success factors in China

Key M&E success factors in China ×