2016 Earned Brand China

1. Earned Brand2016
China

2. The Earned Brand
Earned Brand 2016 China| 2
The Earned Brand’s story is not simply told, it is demonstrated and experienced;
and to do that, brands can’t operate with a style guide alone.
The Earned Brand has a world view and a belief system; a purpose and a
reason for being – one that defines not just the communications, but how the
brand behaves online, offline, and in all contexts.
An expressed set of values informs which products are made, which language is
used, how customers are treated, and ultimately the legacy the brand leaves in
the communities it serves.

3. Managing a brand has never
been more demanding
The pace of change around us is exponential
Previously unmet needs are becoming uncovered leading to disruption
Categories having their conventions completely defied
We are faced with ever more sophisticated and knowledgeable
customers, stakeholders and consumers with increasingly high
expectations

4. Earned Brand 2016 China| 4
Disruption
Changing online and
offline interaction
New business
models
Changing distribution
and payment channels

5. Brand now entails so
much more than product
Why are you there ?
What do you stand for ?
What’s your higher purpose ?
Who is behind you ?
Does the company ‘walk the talk’ ?
What is the societal good you are doing ?
Do you bring value and satisfaction to my life ?

6. And your brand’s product
may be about to change
beyond today’s recognition
E.g. When a car is no longer a self-owned mode of transport but a rented,
possibly shared, state-of-the-art computer

7. Growing
expectations
75% will not buy if a brand fails
to meet societal obligations
80%doing good should be
part of a brand’s DNA
71%brandscando more to solve
societal ills than government
Q17 (Top 4 Box “Agree”), Q20 (Net of 3 items) Earned Brand 2016 China | 7
62%
Global
60%
55%

8. In this context
the relationship we have with our
consumers and customers has never
been more important

9. The consumer relationshiphas never
been more important to our business
Buying
Advocating
Defending

10. We wanted to explore
How strong is
the consumer-brand
relationship?
How does a stronger
relationship lead to
better business
results?
How can brands
strengthen
the relationship?

11. Earned Brand 2016
Methodology
A Global Survey
Timing
April 7 – April 25, 2016
13 countries
Online survey in Australia,
Brazil, Canada, China, France,
Germany, India, Japan, Mexico,
The Netherlands, Singapore,
U.K., and U.S.
13,000 respondents
1,000 per country, nationally
representative of age, gender,
and region based on most
recent country census data.
Social listening
In China, Germany, India, the U.K.,
and U.S., we listened to consumer
conversations on social media to
assess the impact of 15
recent cause-related brand
campaigns or actions.
Earned Brand 2016 Global | 11Unless otherwise specified, all data is from the Earned Brand 2016 study. The full text of the questions referenced in the report appear in the
endnotes. Full explanations of the Brand Relationship Index and other analyses performed appear in the methodology section of the Appendix.

12. 18brand categories
Travel
Mobile carriers
Social media
Automobile
Personal care
Beer, wine, and spirits
Luxury goods
Prescription medicines
Credit cards
Utilities
Grocery stores
Retailers
Financial services
Food and beverage
Home energy management
Fashion
OTC medicines
Household products
Edelman
Brand
Relationship
Index
Earned Brand 2016 Global | 12

13. What is your
favorite brand
– one you already buy –
in this category?
Earned Brand 2016 Global | 13
Edelman
Brand
Relationship
Index

14. Builds trust
at every
touchpoint
Makes
its
mark Invites
sharing,
inspires
partnership
Embodies
unique
character
Tells a
memorable
story
Listens
openly,
responds
selectively
Acts
with
purpose
How well do you feel
this brand…?
Earned Brand 2016 Global | 14See Appendix for a full explanation of the seven dimensions of the consumer-brand relationship.
Edelman
Brand
Relationship
Index

15. The Edelman Brand Relationship Index
is the average of the
seven dimensions
Earned Brand 2016 Global | 15
Builds trust
at every
touchpoint
Makes
its
mark
Invites
sharing,
inspires
partnership
Embodies
unique
character
Listens
openly,
responds
selectively
Tells a
memorable
story
Acts
with
purpose
See Appendix for a full explanation of how the Index was built.
0-100
Edelman
Brand
Relationship
Index

16. A good score but
still room to grow
Relationship strength
0 10020 40 60 80
The Edelman
Brand Relationship Index
China Average
53
See Appendix for a full explanation of how the Index was built. Earned Brand 2016 China | 16

17. The consumer-brand relationship
falls short around the world
39
43
40
32
33
30
32
32
53
34
52
39
Canada
U.S.
Mexico
Brazil
Lowest
The NetherlandsU.K.
France
Germany
32
India
China
Singapore
Japan
Australia
Highest
See Appendix for a full explanation of how the Index was built. Earned Brand 2016 Global | 17

18. The consumer-brand relationship
further growthpotential
across categories
2016 Edelman Brand Relationship Index by category
See Appendix for a full explanation of how the Index was built. Earned Brand 2016 China | 18
59 58 57 57 56 54 54 54 53
53 53 52 52 52 51 50 50 50
Global 43 38 43 41 40 39 39 40 38
Global 39 37 39 36 42 35 33 34 33

19. The consumer-brand relationship
Earned Brand 2016 China | 19
Generation Gender
See Appendix for a full explanation of how the Index was built.
52 5443 54 54 53 53
2016 Edelman Brand Relationship Index
further growthpotential
across demographics
Global 38 44 39 32 28 40 36

20. Earned Brand 2016 Global | 20
The fiverelationship stages
At five points, the data shows meaningful shifts in
consumer attitudes and behaviors toward brands
Strength of relationship with the
favorite brand they buy in a category
I may buy/use your
product, but I don’t
really put much
thought into it.
I know a little
about you, beyond
your product
I am making an
educated choice.
Given a choice,
I would pick your
brand. I appreciate
what you stand for.
We share common
values and see
the world in a
similar way.
We do things
together and for
each other.
We share a past
and a future.
See Appendix for a full explanation of how the five relationship stages were created.

21. So far they’re invested, but
commitment is the last mile
53Strength of relationship with the
favorite brand they buy in a category
The Edelman
Brand Relationship Index
China Average
See Appendix for a full explanation of how the Index was built. Earned Brand 2016 China | 21
38
Global Average

22. They’re willing to go
further with you

23. Commitmentwithin reach–
for all brand categories
Percent of relationships in category that are committed
Committed
26%
32%
22%
34%
18%
25%
24%
27%
30%
23%
29%
23%
28%
25%
24%
Automobile
Social
media
Mobile
carriers
Financial
services
25%
Fashion
Grocery
stores
Credit
cards
TravelPersonal
care
Retailers
Food
and
beverage
24%
Luxury
goods
Beer,
wine, and
spirits Utilities
Prescription
medicines
Home
energy
management
Household
products
OTC
medicines
“Committed” is the last stage on the Earned Brand Relationship Index.
See Appendix for a full explanation of how the five relationship stages were built.
Earned Brand 2016 China | 23
22%
17
Global
13
13
12
14
13
13
12 12 12
10 12 10
13 12
10 8
10

24. Interested Involved Invested CommittedIndifferent
Why earning Commitmentmatters?
24
0
80
60
40
20
And unlock the
POWER OF PEERS
Strong relationships DRIVE
and PROTECT your BOTTOM LINE
From paying a premium, trying your latest
innovations first to sticking with your brand
even if a competitor is getting better reviews,
or is more innovative, greener, etc.
From pro-actively advocating for your brand, to
liking/rating what your brand is saying on social
media and participating in creating the brand’s
content. From defending your brand if they ever hear
someone criticize it to sticking with you even if
something goes wrong

25. Stay Loyal
When I buy products in this category,
it has to be this brand
I am happy to share my
personal data with this brand
I will stick with this brand
even if a competitor is:
• getting better reviews
• more innovative
• greener
• treats workers better
Earned Brand 2016 Global | 25
Strongrelationships drive
and protect your bottom line
Buy First
I am one of the first to try
the brand’s new products
I am happy to pay more for this
brand’s products and services
Q14, ways in which consumers can support a brand.

26. Clear majority of buyers
will buy first
and stay loyal
Percent of buyers who will
buy first and stay loyal
0
80
60
40
20
Earned Brand 2016 China | 26
The untapped opportunity
Q14 (Top 4 Box, “Describes me”.) Average of items associated with buying first and staying loyal
by relationship level. See Appendix for a full explanation for how the five relationship stages were built. *Low base size for indifferent (n=35)
Interested Involved Invested CommittedIndifferent
Global
China

27. Earned Brand 2016 Global | 27
Defend
I defend this brand if I ever
hear someone criticize it
I will stick with this brand even
if something goes wrong
Strongrelationships mean
your customers will go to work for you
Advocate
I always recommend this
brand if someone asks
I advocate for this brand even
when I am not asked
I like/rate what the brand
is saying on social media
I participate in creating
the brand’s content
Q14, ways in which consumers can support a brand.

28. 0
80
60
40
20
Earned Brand 2016 China | 28
The untapped opportunity
Q14 (Top 4 Box, “Describes me”.) Average of items associated with advocating and defending
by relationship level. See Appendix for a full explanation for how the five relationship stages were built. *Low base size for indifferent (n=35)
Interested Involved Invested CommittedIndifferent
Clear majority of buyers
will advocate for and
defend
your brand
Percent of buyers who will
advocate for and defend
Global
China

29. Interested Involved Invested CommittedIndifferent
The 3 consumer
behaviors that
increase the most
fromInvolved
toCommitted
I participate in creating
the brand’s content
Owned
+38
+34
+31
I am happyto share
personal data withthis brand
I defend thisbrand if I ever
hear someone criticizingit
Difference between the percent of
Involved consumers who will take an
action and the percent of Committed
consumers who will take the same action
Q14 (Top 4 Box, “Describes me”.) Behaviors that had the greatest percentage point increase from the Involved to the Committed relationship
levels. See Appendix for a full explanation of how the five relationship stages were built. *Low base size for indifferent (n=35)
Earned Brand 2016 China | 29
Global
+48
+35
+32

30. Our Communications are at
the heart of driving our
consumer and customer
relationships

31. Managing our brand
communications has never been
more demanding
We wrestle with the pace of change in our communications
strategies
We must contend with the speed of dissemination of
information
Co-creation and no cessation in the conversations is a given
We know that control, central ownership and containment
all in the past

32. 94%rely on peer sources to
learn about brands
78% rely on peer sources
for buying decisions
67%use/woulduse
ad blockers
“I rely on my peers to reassure me.
Because their experience is my evidence.”
- Earned Brand 2015
Q31 (Top 4 Box “Rely on most,” net of 3 items), Q32 (Net of 5 items), Q33 (Net of 3 items) Earned Brand 2016 China | 32
86%
Global
71%
58%
The rise of peer to peer

33. You can’t buy
commitment

34. Television
76% 41%50%
The brand’s
website
Blogs
37%
89% regularly use traditional
media sources for
information about brands
Earned Brand 2016 China | 34
Learning about brands:
earned media matters
Percent who use each media type regularly
Q30 (Regular Usage), (Traditional media callout is a net of 5 items)
Search
engines
Shopping/retail
websites not
owned by brand
57%
Social media
sites
83%
The radioMagazinesNews
articles
73% 69% 65%
80%
Global
Global 78%
51% 62% 57%
49% 56%
33% 37% 37%

35. Interested Involved Invested CommittedIndifferent
Advertising can only get you so far
56% Advertising is
primary point
of engagement
52%
41%
Paid
Peer
Owned
Percent who have
used each type of
media to engage with
their favorite brand in
the last 90 days
Q15 (Paid is a net of 4 items, Peer is a net of 7 items, and Owned is a net of 6 items) by relationship level.
See Appendix for a full explanation for how the 5 relationship stages were built. *Low base size for indifferent (n=35)
Earned Brand 2016 China | 35
Global 43%
Global 35%
Global 34%

36. Interested Involved Invested CommittedIndifferent
Involved consumers
surge in their use of peer and owned
56%
52%
41%
Paid
Peer
Owned
Percent who have
used each type of
media to engage with
their favorite brand in
the last 90 days
60%
Peer conversations
more important than
paid71%
59%
Paid
Peer
Owned
Q15 (Paid is a net of 4 items, Peer is a net of 7 items, and Owned is a net of 6 items) by relationship level.
See Appendix for a full explanation for how the 5 relationship stages were built. *Low base size for indifferent (n=35)
Earned Brand 2016 China | 36
Global 57%
Global 54%
Global 52%

37. 56%
52%
41%
Paid
Peer
Owned
64%
78%
72%
Paid
Peer
Owned
Paid
73%
Talking about
and with the
brand matters
far more than
advertising
79%
82%
Peer
Owned
60%
71%
59%
Paid
Peer
Owned
CommittedInterested Involved Invested
Percent who have
used each type of
media to engage with
their favorite brand in
the last 90 days
Conversations are the foundations
of a committedrelationship
Q15 (Paid is a net of 4 items, Peer is a net of 7 items, and Owned is a net of 6 items) by relationship level.
See Appendix for a full explanation for how the 5 relationship stages were built. *Low base size for indifferent (n=35)
Earned Brand 2016 China | 37
Indifferent
Global 63%
Global 66%
Global 64%
Global 65%
Global 72%
Global 73%

38. 56%
52%
41%
Paid
Peer
Owned
From Interested to Committed,
usage of owned grows the fastest
Percent who have
used each type of
media to engage with
their favorite brand in
the last 90 days
Interested Involved Invested CommittedIndifferent
+17
+30
+38
Q15 (Paid is a net of 4 items, Peer is a net of 7 items, and Owned is a net of 6 items) by relationship level.
See Appendix for a full explanation for how the 5 relationship stages were built. *Low base size for indifferent (n=35)
Earned Brand 2016 China | 38
Paid
73%
79%
82%
Peer
Owned
56%
52%
41%
Paid
Peer
Owned
Global 43%
Global 35%
Global 34%
65%
72%
73%
+22
+37
+39

39. Earning
commitment

40. Brands falling short
on purpose, trust and
listening
Relationship dimensions
The average strength of each dimension
of the brand relationship
58
Embodies
unique
character 51
Builds trust at
every touchpoint
51
Acts with
purpose
56
Invites sharing,
inspires
partnership
54
Tells a
memorable
story
54
Makes
its
mark
49
Listens openly,
responds
selectively
53
Lowest marks
See Appendix for a full explanation of how the Index was built and of the
seven dimensions of the consumer-brand relationship.
Earned Brand 2016 China | 40
44
33
3934
35
38
42
38
Global

41. How to strengthen the relationship
through trust
Builds trust at every touchpoint
Top four brand attributes that drive a deeper
relationship around “Builds trust at every touchpoint”
Allow me to
customize or
personalize your
products and
services
Be there for
me
at really tough times
in my life
Modeling Q10 “builds trust at every touchpoint” relationship dimension responses using Q13 “what makes a brand special” items.
See Appendix for a full explanation of how the relationship dimensions were scored and a description of the regression analysis.
Earned Brand 2016 China | 41
Invite me in
and allow me
to play a part
People admire and
respect me
when I use your
brand

42. How to strengthen the relationship
through purpose
Acts with purpose
Top three brand attributes that drive a deeper
relationship around “Acts with purpose”
Care about me
as a person and
make me feel
special
Cares about
the impact on
my community
Invite me in
and allow me
to play a part
Modeling Q7 “acts with purpose” relationship dimension responses using Q13 “what makes a brand special” items.
See Appendix for a full explanation of how the relationship dimensions were scored and a description of the regression analysis.
Earned Brand 2016 China | 42

43. How to strengthen the relationship
through listening
Listens openly, responds selectively
Top four brand attributes that drive a deeper
relationship around “Listens openly, responds selectively”
Be there for
me at really tough
times in my life
People admire and
respect me when I
use your brand
Connect me to
like-minded
people
Invite me
in and allow me
to play a part
Modeling Q11 “listens openly” relationship dimension responses using Q13 “what makes a brand special” items.
See Appendix for a full explanation of how the relationship dimensions were scored and a description of the regression analysis.
Earned Brand 2016 China | 43

44. Earned Brand 2016 Global | 39
When brands get it right
Social listening analysis capturing
consumer responses to various brand campaigns
Builds trust at
every touchpoint
Listens openly,
responds selectively
Acts with purpose
“ “
Source: Quotes from Sina Weibo.
“SK-II empowers me to be an
independent single woman.
—Nancy He, woman aged 42
Xiaomi‘s products speak to who I am,
and I can even be part of new product
development through its
crowdfunding platform.
— Jose Zhang, IT
I believe I have a promising career
opportunity at Starbucks with the
sufficient trainings they provide.
My customers trust me make the best
coffee they can find in town.
— Mike Chen, a barista working at Starbucks