Tencent boss SY Lau has warned that any global brands looking to exploit rather than explore the growing Chinese market will come unstuck.
Speaking yesterday (21 June), Lau this years Cannes Lions Media Person of the Year also addressed the changing behaviour of young people in the country, a generation he referred to as native citizens of connectivity.
Lau, Tencents senior executive vice president and presenting of its Online Media Group, began his session referring to his absence from his family on Fathers Day.
He explained that he gifted his daughter a 3D printer for her sixteenth birthday, a donation which led to aspirations of setting up a 3D entrepreneurial club at her school.
By 2020, the number of connected devices will exceed the global population by 26 times, a surge which is creating a generation immersed in the power of technology, said Lau. They have their own culture and language, and their own set of values. They view the world as a totally interconnected place, he added.
However, rather than marvel at the size of the numbers especially when it comes to the Chinese market brands should not forget than a human being is controlling that device: Development for developments sake is inconsequential. What matters is the human face behind the device.
With many brands keen to tap into the enormous potential of China, Lau told delegates to approach the market with the spirit of adventure rather than greed.
I gradually understood the strengths of [Chinese] local start-ups; they have outperformed multinationals by grasping face behind the device. We can have all the data in the world, but if our programming is the same then nothing will ever change, said Lau.
Behind the huge numbers, the complexities [of the Chinese market] are understated and the returns are often exaggerated.
When we approach the Chinese market, let us be imaginative seekers think math men, not just mad men. Have the spirit of an adventurous entrepreneur think exploration, not exploitation.
