CIC 2011 White Paper: From Social Media to Social Business Topic 1: An Overview of the Evolution of Chinese Social Media

From Social Media
to Social Business
Topic One
An Overview of the Evolution of Chinese Social Media

A CIC Social Business White Paper

Awareness
Amplification collaborate Frictionless Interaction
Consumer Insight E-community Engagement
social capital
Think Out of the Box
Social
Engage
resources

SSC Advertising Inspiration Comment
E2.0 e-fluencer Share
SCRM
Information

crowd sourcing Microblog Buzz
IWOM
Marketing execution

Brand Evaluation Internet Netizen
Social Business Design

Communities
Commerce

Business
RSS
Brand

Listen
Weibo Know
Connect Participate Business Intelligence
BBS Website WIKI
LBS

Media
Advocacy
SNS Marketing
Activation Transact Intelligence
Online conversation Blog
Internet Word of Mouth
Incubation Cultivation Development Proliferation
Network Revolution

www.ciccorporate.com

Preface
In the US, the relentless expansion of Twitter and Facebook continues to change the entire
Internet landscape. Nowadays, social media is as equally integral a part of people’s online
lives as other key Internet services; search engines, portals or e-commerce platforms. The
extended 3rd party applications incorporated by social media platforms help to quickly form
an immersive eco-system and have aided the perpetuation of this social business revolution.
Since 2006, Crowd sourcing, Enterprise 2.0 and Social CRM etc. appeared one after another.

In China, the social media environment has been really heating up as traditional Internet
giants like Taobao, QQ, Baidu and Sina have joined the battle. The boundary between SNS
and e-commerce being blurred by the emergence of some group purchase sites. We have
also seen big platforms starting to adopt an “Open API & Platform Strategy”, based on a
realization of the importance of 3rd party applications to their success.

The social business revolution is gathering momentum and we’re on the brink of a golden
opportunity to transform the relationship between commerce and communication. To better
equip enterprise to embrace and leverage the social business revolution, CIC are launching a
series of White Papers in 2011, “The Evolution from Social Media to Social Business in
China”.

The series will focus on three key areas. The first, “An Overview of the Evolution of Chinese
Social Media”, will act as guide through the development of China’s unique social media
landscape, exploring the corresponding business applications at each stage. The second,
“Online Efluencer Workshop”, will dive deep into the role of online efluencers; those who
actively engage communities, tapping into their deep motivation and examining the culture
of those who drive digital discussion. The third, “A Preview of Social Business Operation and
Management in China”, will introduce the practical application, exemplifying cases in which
businesses integrate web2.0 technology. We aim to highlight the strategic remodeling of
communication relations not only between brand and consumer but also corporate
organization and overall business operation.

CIC are the first to advocate this concept and define “The Evolution from Social Media to
Social Business” in China, proposing the definition of “social business” and prospecting its
future. The business model of every enterprise and organization in China will eventually
evolve to meet the age of “social business”. All business will become social business.

March 2011

An Overview of the Evolution of Chinese Social Media i

Topic one

March
From Social Media to Social Business Chinese Social Media
An Overview of the Evolution of 2011

Table of contents
Chapter I
China – In Step With Global Social Media Development

P 01 - 1.1 The global development of social media
P 02 - 1.2 The boom of social media in China
P 03 - 1.3 The unique landscape of China’s social media
P 05 - 1.4 The history of China’s social media

Chapter II
Enterprise Adoption of Social Media in China

P 06 - 2.1 History of enterprise adoption of social media
P 06 - 2.2 Incubation (1994 – 2003)
P 07 - 2.3 Cultivation (2004-2006)
P 11 - 2.4 Experimentation (2007-2008)
P 15 - 2.5 Proliferation (2009-2010)
P 22 - 2.6 Revolution (since 2011)

Chapter III
The Connecting Threads of Chinese Social Networks

P 25 - 3.1 Personal interaction in Chinese social media
P 27 - 3.2 A brief history of China’s weblebrities
P 29 - 3.3 Styles of the Chinese social efluencer
P 37 - 3.4 Social efluencers’ workshop

An Overview of the Evolution of Chinese Social Media ii

Chapter I: China – In Step With Global Social Media Development

Chapter I
China – In Step With Global Social Media Development
1.1 The global development of social media
According to the latest statistics released by the ITU (International Telecommunication
Union), the global netizen population had reached 2.08 billion by the end of 2010. That is
approximately 30% of the world population. Facebook, currently the most popular social
media platform worldwide, was approaching 0.6 billion users, about 29% of the world’s
netizens and 8% of the global population. There is a phrase online: If Facebook were a
country, it would have the world’s third largest population after China and India.

Global Web Index, a foreign Internet research agency, carried out a worldwide investigation
among Internet users in 2010. The results reaffirmed the belief that Social Media has
become a major part of netizens’ lives.

Figure 1-1 Social Media Involvement by Country

Note:
Social Media is defined as
Internet based platforms and
technologies that permit users’
interaction and/or facilitate the
creation and exchange of user
generated content. Whilst the
scope is evolving, currently the
most frequently used examples
include: blog, microblog, online
video site, BBS and social
network.
Source: European Marketing
Research Association(ESOMAR)
“Social Media Research Guide”. Source: Global Web Index-Global State of Social Media in 2011

© 2011 CIC An Overview of the Evolution of Chinese Social Media P01


1.2 The boom of social media in China
In China, with the recent improvement of network infrastructure, Internet penetration rate
is increasing all the time. According to the latest statistics from the China Internet Network
Information Center (CNNIC), the number of Chinese Internet users had reached 457 million
by the end of 2010. Social network users hit 235 million, blog users 294 million, BBS users
148 million and online video users 284 million. In China, on average, one netizen has three
social media identities.

From the total number of social media users and the exponential growth trend, it is quite
easy to see what an integral part of China’s Internet social media has become.

Figure 1-2 China’s Social Media Penetration Trend

Unit: million people
500
450
400
350
300
250
200
150
100
50
0
2004 2005 2006 2007 2008 2009 2010
Microblog BBS SNS Video Blog IM Internet

Data Source:
The 27th Statistical Survey Report about Internet Development in China by CNNIC, Jan 2011
Note: Due to the rapid growth of the microblog medium in China, users numbers for microblog had exceeded
100 million when this white paper is published. (Based on public Internet data source)



1.3 The unique landscape of China’s social media
Just as in the West, China has a variety of social media platforms where netizens can
communicate with each other and share information.

Figure 1-3 China Social Media Landscape 2011

Source: CIC, please click here to see the originals

Note: In year 2008, CIC created the 1st Chinese Conversation Prism which was inspired by
Jesse Thomas and Brian Solis, and it is updated annually.
Although China’s overall social media landscape is reminiscent of other countries’, it is also
unique and highly fractured in comparison. Taking social networking sites as an example,
Facebook is a clear leader overseas. However, in China, sites such as Qzone, Kaixin, Renren
and many more compete for netizens’ attention. With unique and often multiple versions of
common social media platforms, China offers one of the most complex and fragmented
social media landscapes in the world.


Furthermore, compared with Western netizens, Chinese netizens are more inclined to create
and share content. Research organization Forrester once compared the online behavior of
Chinese and American netizens, finding that the proportion of Chinese netizens (44%) who
create content was substantially higher than that of American netizens (24%). Then there
are wholly unique net cultures and languages. As with the rest of the world, net language
can bleed through to offline use and become a general expression. In China, the creativity
and propensity for sharing of netizens makes this trend even more prevalent.

Figure1-4 Chinese Netizens are More Engaged and Creative

79%
73%

51%
44% 46%
37% 37%
32%
24% 21% 18% 17%

Creators Critics Collectors Joiners Spectators Inactives

US China

Source: Forrester Research’s Consumer Technographics data
US: Forrester Research‘s North American Technographics® Online Benchmark Survey, Q2 2010 (US), 26,913
respondent; China: Forrester Research’s Asia Pacific Technographics® Survey, Q4 2009, 7,690

© 2011 CIC
An Overview of the Evolution of Chinese Social Media P04


1.4 The history of China’s social media
The roots of China’s social media can be traced back to the first BBS (Bulletin Board System -
online discussion forum or community) in 1994 - Shuguang BBS. It was the start of a trial
period in China’s Internet development, when there were only a few thousand Internet
users among a billion citizens. 1994 to 2003 was the incubation period, when BBS, customer
review sites and instant messaging all began to integrate with netizens’ lives. From 2004
onward, blogging, online video, social networks, Wiki, the microblog, location based service
and group purchase all burst on to the social media scene. The landscape of social media
became ever more complex and netizens’ understanding of social media grew ever deeper.
From 2011, all of these diverse social media platforms began to cooperate and integrate
with one another.

Figure 1-5 China’s Social Media History

Source: CIC

Throughout the whole history of China’s social media’s development, businesses have used
social media in more and more sophisticated ways. This aided the development of social
media and in the second chapter we will go on to examine the hottest topics during each
key historical period of China’s social media development. We will also take a closer look at
how enterprise’s use of social media marketing and strategic business application can reap
big rewards.


Chapter II: Enterprise Adoption of Social Media in China

Chapter II
Enterprise Adoption of Social Media in China
2.1 History of enterprise adoption of social media
With the development of social media in China, business’ adoption is continuously
deepening and diversifying. The comprehension and application of social media can be
divided into five stages: Incubation (1993-2003), Cultivation (2004-2006), Experimentation
(2007-2008), Proliferation (2009-2010) and Revolution, which indicates the arrival of Social
Business.

Figure 2-1 Enterprise Adoption of Social Media

Source: CIC, inspired by Altimeter Group

Let us look at hot trends for social media for each stage and relevant business’ use.

2.2 Incubation (1994 – 2003)
The phase between 1994 and 2003 is commonly regarded as the incubation period as
enterprise rarely employed a social media strategy.

At this stage, the earliest BBS (platforms such as Xici and Tianya) gathered many users both
inside and outside campus and later those BBS became some of the most influential discussion
forums on the Chinese Internet. The instant messaging service QQ facilitated instantaneous
inter-netizen communication and Dianping provided a specialized platform for consumer
feedback but generally, BBS, IM and customer review sites remained unsophisticated platforms
for ordinary netizens, rather than developed business models.



2.3 Cultivation (2004-2006)
2004 was the beginning of the Web 2.0 era, when netizens began to create engaging
content and share with others. We were able to observe consumer’s complaints about, or
admiration of, brands, products and services. We also began to witness the rudimentary
evolution of online video, SNS and Wiki.

At the same time, a spate of Internet crisis made some organizations pay more attention to
the importance of online buzz. Some companies engaged in blog marketing; using official
corporate blogs to set up a communication channel that could respond to unforeseen crisis.
Others employed an open source marketing strategy to encourage netizens to use their
intelligence and creative instinct to participate in brand ideation, making them feel closer to
their favorite brands.

2.3.1 Crisis 2.0 - A new challenge of the PR department
With Web 2.0 and the development of social media, netizens could share their experience
and review brands and products more freely online. In this way, IWOM began to influence
consumer perception and sway purchase decisions.

Note: the definition of IWOM by CIC
IWOM: Abbreviation of "Internet Word of Mouth." It stands for text and multimedia content
related to companies, products or services shared by netizens, including brands and
consumers, via online community platforms such as BBS (online discussion forum), blogs,
video sites, SNS and microblogs.

Marketing professionals cannot escape the fact that a lot of crises were born out of the
negative buzz online or they were spread rapidly through Internet Word of Mouth. This is
what we call Crisis 2.0 – a crisis launched or exacerbated by social media.



Examples of Crisis 2.0 can be drawn from as early as 2004-2006. KFC faced great pressure
from netizens when it released advertisements that implied that those who eat KFC would
be admitted to university, while those who do not, fail. Japanese cosmetics brand SK-II was
compelled to quit the Chinese market when online discussion spread the news that
forbidden ingredients were discovered in quite a few SK-II products. Computer giant Dell
unconditionally accepted customers’ reimbursement requests after the “Dell Hell” crisis. Of
course, social media played a significant part in all of these crises. As the stress of IWOM
crisis mounted on corporate PR departments, corporate started to address the issue in
social media. They also proactively build systems to monitor and study IWOM. In this way,
corporations could learn from consumer opinions delivered by social media, then respond in
an appropriate and timely manner.

Crisis 2.0 Case Study – Dell Hell in 2006

• June 23: First consumer complaint on IT168 BBS notebook forum

• June 24: IT168 forum administrator invites others to complain about Dell

• June 24: IT168 sets up special "Dell Hell" section to track issue

• June 28: Dell responds to the incident, says "sorry“

• June 29: Lawyer Ma Jianrong invites forum participants to join a class action lawsuit

• June 30: Story moves to mainstream media, dubbed "Processor Gate“

• July 4: CCTV reports the class action suit

• July 5: Dell offers refund; consumers not mollified

Source: CIC founder blog article China Dell Hell (aka Processor Gate)



2.3.2 Rise of the Blog – the debut of corporate blogging
In 2005, two of the Chinese Internet’s most important people, Fang Xingdong1 and Chen
Tong2 triggered the era of the popular blog. After that, efluencers and average netizens
started to blog. Overseas, more and more foreign companies followed Microsoft and SUN in
establishing their own blog. Corporations found that it was a good way to bypass traditional
media and expand their business scope, promoting sales and building brand loyalty through
blogging. Michael Wiley, director of GE’s New Media Affairs, claimed that “when we think it
is necessary to respond, we just enter the blog and express our views directly to the
customers.” We also saw Dell had learned from the Dell Hell crisis, setting up their Chinese
blog “Direct2Dell” in 2007, establishing a direct communication channel with their
consumers.

Corporate blogs can be classified into three categories; Executive, Product & Technology and
Culture & Value. These blogs can give a vivid image of a corporations’ culture.

Note:
1Fang Xingdong, founder of Blogchina (now Bokee), “Godfather” of blogging in China, popularized “Boke”
(博客) as word for blog in Chinese.
2Chen Tong, VP and Chief Editor of Sina, one of the most important proponents of Sina blogging service
(http://blog.sina.com.cn).

Figure 2-2 Categories of Corporate Blog

Source: CIC



2.3.3 Open Source Marketing
In 2006, a trial of Open Source Marketing swept China. Industries ranging from FMCG to
electronics and luxury products, even portals and web2.0 sites, began to practice Open
Source Marketing, which inspires netizens to take part in marketing ideation. The core of
Open Source Marketing is participation. During the process, netizens feel challenged but
with that comes the fun of co-operation and the reward of creating something. All the while,
brands collect creative ideas, impart their brand values and culture, build stronger
relationships with their consumers and engage new fans.

Open Source Case Study: Pepsi Creative Challenge 2006 – You write the TVC！

It is your script that counts

Pepsi Creative Challenge was a marketing campaign that Pepsi designed for its spokesperson － pop
singer Jay Chou. Fans could submit their scripts, from which netizens chose the final winner, becoming
Jay’s Pepsi TVC. From May to August, more than 25,000 scripts were submitted and viewed.

Source: CIC

Please refer to CIC blog ”Open source marketing in China – the Power of Open source (Chinese version)” to
understand more.



2.4 Experimentation (2007-2008)
2.4.1 Chinese social media landscape began to take shape
In the experimentation stage, Chinese online platforms diversified and the social media
landscape began to take shape. BBS remained the center of the Internet community for
netizens’ discussion and sharing. Blogs enabled greater expression of individuality. Video
sharing turned everybody into a movie director, publisher and critic. SNS enhanced
communication and interaction between friends. More netizens could get online on the
move, by phone or other mobile device and we all welcomed the Mobile Network Era.
(Reference: CIC 2008 white paper series “The Internet is THE Community” Topic One: The
Chinese IWOM Landscape)

2.4.2 Unique net culture and net language
Unique net cultures and net language started to emerge on these diverse networking
platforms. Netizens “Shai” (晒/show) themselves or products with pictures and videos,
voiced opinion and attitude by spoofing and conveyed emotion with unique symbols or
creative animation.

Net culture: The “Shai Ke” (晒客/people who enjoy doing shai) shares how they live, what
they like and a few of them even expose their bad experience online.

Figure 2-3 “Shai” culture

“Shai” products “Shai” life “Shai” Hei

“shai hei”: share negative
remarks of a bad experience
which creates harmful word
of mouth.

Source: IWOM Watch 2nd Half Year Review, 2007

Others tend to express their opinion by spoofing, joking or playing tricks. ( ex. in 2007,
Netizens redesigned the photo of a knife wielding mad man in Chunxi Street with brand logo
or ads)



Figure 2-4 Netizens redesigned the photo of a knife wielding mad man in Chunxi Street with brand
logo or ads
Original photo Redesigned photos

Source: IWOM Watch 2nd Half Year Review, 2007

Net language: Net culture inspired its own language. Netizens started trends by reinterpreting
ancient Chinese characters. For example, “囧 (jiong)” was given new meaning, either as
depressed, lost or embarrassed because it looked like a facial expression. Now it is used on
mass by netizens, across all kinds of social media platform.

Figure 2-5 囧 was incorporated into videos, brands and products.

Video Brand Product
Source: CIC 2008 white paper series “The Internet is THE Community”
Topic Three: The Diversity of Chinese Net Language

Letters and numbers were also used to ease communications. For example, Orz=on one’s
knees, 555=crying, 3Q=thanks. Sometimes popular words can be used to express individual
emotions and attitudes. For example, “雷 (lei)”means shocked, “俯卧撑(fuwuocheng,
pushups)”, ”打酱油 (dajiangyou)” means it is none of my business.

Figure 2-6 Tuzki
It is not just written language, animation
is also being used to show how you feel.
Tuzki, a cartoon rabbit, became a hugely
popular means of caricaturing your mood
and expressing yourself online. Tuzki
even served as a spokesperson for
Motorola and was purchased by Turner
Networks. Source: IWOM Watch 2nd Half Year Review, 2007



2.4.3 Business’ diverse application of social media
The Internet in China is the most fragmented and multifaceted in the world. As it continues
to grow in complexity with each passing day, with new platforms and cultures emerging, it
presents an ever increasing challenge to business communication strategy. Netizens are
becoming ever more active in the digital space; whether it is “Shai” or “Spoofing”, they are
finding a voice in social media to express appreciation or dissatisfaction with brands. Key
opinion leaders, or efluencers, disseminate their message rapidly through a variety of
platforms. Brands realize they need to listen more, have a better understanding and
participate more effectively in the netizens’ online landscape. This means a more proactive
approach to social media. Through this engagement and participation, brands are also
driving the further development of social media platforms.

According to CIC’s L-K-P model, businesses’ application of social media is embodied in the
following 6 areas:

Figure 2-7 Business Application of Social Media

Source: CIC



Listen – Listen to IWOM, gather industry intelligence from social media channels and
assess a brand’s online reputation
• Online Reputation: Public Relations departments monitor and track the brand’s IWOM
regularly, systematically understanding and assessing awareness (buzz volume) and
reputation (sentiment). This monitoring facilitates early detection of any potential crisis
and identifies PR opportunities.
• Market Intelligence: Business Intelligence and Strategic Planning departments not only
gather information from news clippings, offline surveys and statistics from industry
association , they also get the latest intelligence and competitor dynamics through social
media’s real-time reaction and dynamic expression.

Know – IWOM offers consumer insight and product feedback. Ensure a thorough
understanding of online community culture
• Consumer Insights: Market Research and R&D departments are often surprised that
IWOM has become a unique and highly effective channel for them to identify consumer
needs and product feedback. Social media has turned the Internet in to an immense
focus group. IWOM, based on consumers’ independent and spontaneous expression, is
more natural and more authentic than any conventional survey.
• Advertising Inspiration: Marketing departments and advertising agencies can
brainstorm new ideas based on contemporary, user generated internet culture. They
can then utilize these very means of production, inviting grassroots weblebrities as
product spokesperson, attracting efluencers to facilitate brand interaction and
broadcast the message, while employing net language and net culture in the
advertisements.

Participate – Take an active role in the online community, interact with netizens and
convey the brand message in an authentic voice
• Digital Marketing Plan: To make best use of the business opportunities presented by
the Internet era, companies established digital marketing or digital media buy
departments. These departments would coordinate with others internally to explore
online communities. Digital strategies could be plotted against market conditions and
be properly implemented and executed from within organizations. Optimal digital
marketing activity rests on three cornerstones: respect for creative ideas and feedback
from netizens; a platform for equal dialogues; a willingness to participate in the
community as a open, corporate citizen, with an attitude of listening and cooperating
with others.
• Marketing Execution Feedback: A huge number of consumers express their feelings
and comment on brands’ online and offline campaigns. This IWOM must be taken
seriously by the marketing department and advertizing agency when evaluating
marketing activity. Many have established means of assessing IWOM (KPI), in order to
compare campaigns vertically or horizontally.



2.5 Proliferation (2009-2010)
In 2009, China entered the proliferation stage of social media development lead by a boom
in social network sites. Then viral videos spread over from video sites to other social media
platforms. Later, microblogs, lead by Sina, started to grow. In 2010, the microblog medium
really took off. Along side this, group purchase has also been blossoming, as well as a hot
wave of checking in raised by LBS (location based service) sites headed by Jiepang and
Sifang. The key significance of this rapid evolution is not simply in the emergence of new
platforms but also in the dedicated participation of netizens.

After this period of proliferation, netizens became increasingly diverse and the function of
social media became ever more complex. Brands, organizations and media corporations are
not just finding different ways to use social platforms, some pioneering enterprises are
establishing departments to better manage the impact of social media.

2.5.1 Social network sites (SNS)
Social networks, which feature both BBS community conventions and the characteristics of
blog self-expression, encourage netizens to use their real names and communicate more
personally. In 2009, Kaixin successfully entered the white-collar market by leveraging social
games and Xiaonei was rebranded as Renren, also expanding its audience of young, white-
collars. With the rapid development of China’s SNS communities, marketers began to pay
more attention and brands targeting this potential audience began to participate in these
communities in different ways. Outlined below is one of the more typical and representative
cases we observed:

SNS Case Study – Lohas Juice

In May 2009, China Oil & Foodstuffs
Corporation (COFCO) cooperated
with Kaixin SNS to promote a new
brand called ‘Lohas’. Using Kaixin
Garden, netizens could plant Lohas
seeds, harvest fruit and then turn it
into Lohas juice. In two days, the
participants reached 3,676,464 and
within a week, COFCO had 284,202
Lohas fans.

Source: CIC IWOM Watch, May 2009



2.5.2 Viral video
By the end of 2010, online video users reached 284 million (Data Source: The 27th Statistical
Survey Report about Internet Development in China by CNNIC, Jan 2011). State run websites
like CNTV and private video sites like Youku, Ku6 and Tudou have all become a big part of
netizens’ lives. As a result, many brands started using viral videos to promote sales. The
swell in popularity was fuelled by integration with social websites, making the viral spread of
dynamic content faster and more wide reaching.

Viral video case study: Carlsberg’s viral videos gain popularity online

Sample Quote： Sample Quote： Sample Quote：
Is this a gift that Carlsberg I still believe that China One video is enough. Why
gave to the Chinese football would win the World Cup always doing this. It is
fans? someday! meaningless.

During the World Cup, Carlsberg launched three viral videos for Chinese football fans. In these videos,
China took on world class football teams such as Argentina, France and Brazil in competitions such as
“mahjong, hot pot and ping-pong”, in an effort to promote the Carlsberg brand’s spirit – “have fun”.
Although many netizens felt that repeated videos in the same style made them feel bored, the majority
of comments were positive and netizens liked how the brand addressed Chinese football fans “dreams of
winning the World Cup.”

Source: CIC IWOM Watch, June 2010



2.5.3 The boom in microblogging
The microblog, or “Weibo” to Chinese netizens, is faster and more convenient to release
than a conventional blog. This low barrier to entry makes it more accessible. The 140
character limit makes it easy to publish, browse and re-publish, forwarding to your peers in
just one click. Much of the popularity of the microblog medium is in no small part due to
the shortened distance between celebrities and their fans.

In 2007, microblog pioneers like Fanfou and Jiwai were already on the scene but microblog
platforms didn’t become popular until four portal sites (Sina, Sohu, 163 and Tencent)
launched their own microblog services within a year. In August 2009, Sina became the first
portal site to launch a microblog service and from end of 2009 to the beginning of 2010,
Sohu, 163 and Tencent followed. These are the key players but there are others; Xinhuanet,
People, Ifeng and Hexun have launched their own microblog products.

According to the latest statistics released in February 2011, the total number of registered
microblog users shared between the top three portal sites (Sina, Tencent and Sohu) has
already surpassed 200 million, among which, the registered users of Sina Microblog have
reached 100 million and its daily tweet reached 25 million.

Figure 2-8 History of the Microblog in China

Source: CIC collected information via social Q&A site Zhihu



The emergence of the microblog gave businesses a more direct channel to interact with
their consumers. Many netizens felt that through use of the microblog, brands sounded
more like real people and their voice could be heard directly by the brand. Now, there is
definitely a growing trend for companies to launch an official microblog, just as they did
with conventional blogs years ago. In the battle of the microblogs, we have found a wide
range of organizations and government institutions, all vying for user attention.

Microblog case study: 600 cabin crew from China Eastern sign up Sina microblog
Around 600 cabin crew from China Eastern Airlines joined Sina microblog with the intention to better
communicate with their customers/netizens, their ID are all marked with ‘凌燕(Lingyan)’. It does help
brand to build customer loyalty and to deal with any potential crisis.

Source: CIC IWOM Watch, Feb 2010

2.5.4 Group purchase
While group purchase sites like Groupon must build a large community of consumers on a
sort of “build it and they will come” approach, Chinese consumers have long been
organizing themselves and initiating group purchase via Internet communities without the
encouragement of any formal service. Sites like 51tuangou.com didn’t start the wave of
group purchase, they simply rode it. Later, a large number of websites, including Meituan
and Lashou, inspired by Groupon’s success, offered big discounts for one type of product or
service on a daily basis. As long as the number of orders reached the minimum, the
purchase will be effective. (Please click here to read more about the history of Chinese
online group purchase.)

Group purchase websites can develop quickly not only because of the alluring price, but
also thanks to the close cooperation between group purchase websites and other social
media. Consumers can not only log on to some group purchase websites directly through
their Kaixin or Sina Microblog account, they can also share their deal with peers across SNS
websites like Kaixin and Douban.



Figure 2-9 Group Purchase in China, 2010

Data Source: Tuan800.com

Group purchase websites help brands boost short term sales volume as well as build brand
awareness. All sorts of businesses have successfully employed this tactic; restaurants, hotels,
shops and cinemas to name but a few. We found many well-known brands that regard the
concept of group purchase an opportunity to revolutionize and socialize sales.

Group purchase case study: Mercedes-Benz “smart” campaign on Taobao
“200 Benz Smart cars were sold out in 3.5 hours!” was a headline that went viral all over the Chinese
Internet. This campaign on Taobao called “be surprised after one click” (一点惊喜) was launched by
Mercedes-Benz who provided up to 25% off for Smart cars. The sales revenue was CNY 27 million.

Source: CIC IWOM Watch, Aug 2010



2.5.5 Location based service（LBS）
The birth of Foursquare made location based service (LBS) a new netizen favorite on
Internet and mobile devices. Since 2010, over 20 mainstream LBS websites, including
Jiepang, Sifang, Bedo and Digu have sprung up. Netizens “check in” online at real-world
locations, actively seeking out and collecting virtual badges, which in some cases can earn
tangible rewards such as coffee, clothes and even concert tickets. On the 11th of October
2010, Netease launched Bafang.163.com, becoming the first portal site in the LBS arena.
Recently, Sina microblog launched an LBS service named “Wei Ling Di” or “Micro Territory”.
Figure 2-10 Main Chinese LBS sites

Source: CIC IWOM Watch Special edition for LBS

Although this industry is still in its infancy, brands and organizations active in social media
have begun building relationships with LBS websites. This is already producing some very
impressive success stories.
LBS case study: Checking in with Jiepang; getting gifts from Starbucks.
Recently, Jiepang launched a marketing event together with Starbucks that will award different kinds of
specialized Starbucks badges to those who’ve checked in at any Starbucks store in Jiangsu, Zhejiang &
Shanghai. The "Special Christmas Badge" event was awarded if you checked in more than 10 times.
People were allowed to collect another 5 customized badges, earning them the right to join the lucky
draw for Starbucks Christmas Crystal Ball.
All Starbucks stores in Jiangsu, Zhejiang
& Shanghai joined “Check in” events.

Jiepang will mark location with badges as “with surprise”

Source: CIC IWOM Watch Special edition for LBS



2.5.6 The establishment of business’ social media center of excellence
Chinese social media became increasingly complex and its audience ever more dispersed
after the proliferation period of 2009 and 2010. In order to better manage the potential
opportunity and challenge presented in this fractured environment, pioneer enterprises like
Dell and Intel established social media listening centers, where specialized teams were
assigned to take charge of social media strategic planning, training and assessment. Those
actions not only involve marketing, public relations and advertising but also involve a host
of other departments.
R&D and Customer Service: BBS and customer review websites house a vast number of
consumer comments and views on brands and products. They can offer a basis for
creative inspiration and new product development, while helping to improve the
quality and efficiency of customer service.
Marketing and Communication: SNS, Microblog, LBS and instant messaging offer
strong interaction and widespread coverage. So, they are well suited to interactive
marketing and communication activities to that can improve brand image.
Sales and Advertising: Brands could sell products, launch product placements or video
ads on e-commerce, Games or Video sharing websites to boost sales and build brand
awareness in a short time.
Human Resources and Culture: SNS and Microblog have become new recruitment
channels. Companies can not only release pictures and videos related to their
corporate activities, improving enterprise culture and image, they can also directly
communicate with potential candidates.
Public Relations and Market Intelligence: The Wiki is an ideal platform for knowledge
sharing and blogs are highly effective in conveying a business’ professional image.

Social Media Center Case Study: Dell’s Social Media Listening Command Center

Source:
Direct2Dell

Real-time maps and statistics are displayed on big screens. In the event of IWOM crisis, red lights
indicate an area, informing you on which platforms the crisis appeared and its nature. The system will
immediately assign relevant customer service people to solve it. Think rapid-response IWOM
taskforce, like something from a TV show… Pretty cool!


2.6 Revolution (Since 2011)
In this period, various social media started seek cross-border cooperation or integration. The
huge business revolution is coming – The rapid development of social media and the
increasing implication of IWOM are not only reshaping the relationship and communication
between brands and consumers via advertising, public relations, marketing, sales, human
resources and customer service, but also reform the business model and organizational
structure of the enterprises.

2.6.1 Cross-platform cooperation and integrated social media
Social media has many advantages over traditional media: vast numbers of highly engaged,
active users; high repeat visit rate, long spells of exposure and access to detailed user
information. Of course, there is also the interaction and influence between users. Many still
regard it as the latest vehicle for public relations and brand promotion. However, there are
those industry pioneers who have already begun to utilize its social attributes in order to
launch more extensive, engaging business initiatives.
Cross-Platform: Media platforms can integrate other applications, for example Taobao’s
SNS application “Taojianghu” or Renren’s e-commerce service “Renren Aigou
(igo.renren.com)”. Besides, Kaixin integrated Kaixin group purchase and Sina became
one of the owners of m18.com, an online textile retailer.
Open: Platforms can open up to third parties or cooperate with other media channels.
Renren and Sina microblog can link to shopping websites like 360buy, synchronizing
users’ shopping information, reviews and recommendations across the shopping site
and the SNS platform. OpenAPI is a common application in this process. The success of
Facebook and Twitter is closely linked to their practice of encouraging 3rd party
enterprises to develop applications. Chinese Internet pioneers have also started to
consider expanding their website functions through Open API, prompting the
establishment of the ‘Developers Conference’.
Note: Open API’s allow service providers to package their own websites with a set API （Application
Programming Interface）that is open to third party developers

The integration of the social media and e-commerce looks set to be a key trend of future
social business application; the social media platform is responsible for gathering customer
information and managing customer relations, while e-commerce platforms focus on
commodity supply and management. Of course, social media can also try to attract business
applications via Open API and explore a whole new profit model. The advertising model
based on the ‘golden age of TV’ era will be forced to adapt to the social business revolution.
New advertising practices, from buying to effect evaluation, will emerge. Marketers will pay
more attention to “participating”, rather than simply “viewing”



2.6.2 The appearance of the overseas social business concept
In the West, some research organizations (such as Forrester) have already started
investigating social business, and some organizations have begun to take part in enterprises
social business design. The Dachis Group, as pioneer of this industry, proposed that “the
revolution of technology, society and workplace has already changed our way of doing
business. We must rethink how to restructure our organization in order to better utilize this
revolution and to better cope with the following challenges. The traditional model will no
longer be effective and the age of social business design is coming.” (Source: Dachis Group
Official Website)

2.6.3 The upcoming social business revolution in China
Looking at the process by which social media evolves into social business, we found that
IWOM and the application of social media intelligence no longer belong to an individual or a
lone department. It is more suitable to regard this information as an important strategic
element in the planning of a company’s overall operation and management. As we have
discussed, the rapid development of social media and the increasing implication of IWOM
are not only reshaping the relationship between brands and consumers via advertising,
public relations, customer service and other related marketing communication channels but
also changing the entire business models and organizational structures. These changes are
about more than just communication.

For example “group purchase”, as we have discussed many times, is game-changing in terms
of enterprises’ sales system. Customer services simply must acknowledge Internet word of
mouth and online opinion. Brands have to overhaul their customer service systems in order
to respond to high volumes of online consumer questioning and opinion. Human resources
and social media, particularly in terms of recruitment, have been changing the way
companies post job opportunities and candidates make applications – e.g. Linkedin. The
traditional recruitment management model is just no longer enough. All of the signs indicate
that not only does each function need to be adapted and ‘socialized’ but that the entire
organization may need to be redesigned and recalibrated to fully leverage social media and
IWOM intelligence and become a truly social business. (Please click here to read more about
social business.)

Note: Social Business is an organization designed consciously around social tools, social media and social
networks, as a response to web 2.0’s revamped technological space and its reshaped brand-consumer
communication and business disciplines.



Quite simply, if every business is to become a social business, every business needs to
embrace the new services, new technologies, new applications and new platforms that will
enable that competency. Just as ERP (Enterprise Resource Planning) systems enable more
effective management across the organization and CRM (Customer Relationship
Management) systems enable more effective consumer relationships, a Social Business
Support System enables more effective use of social intelligence right across the
organization.

Note: CIC defines a Social business Support System(SBSS) as an integration of the tools and
services that empower individuals, agencies, media channels and organizations at all levels
to establish, develop and manage their own social business knowledge, application and
overall network, both internally and externally.


Chapter III: The Connecting Threads of Chinese Social Networks

Chapter III
The Connecting Threads of Chinese Social Networks
3.1 Personal interaction in Chinese social network
As discussed in Chapter 1, Chinese social media is becoming increasingly complex. Yet, the
simple premise of personal interaction remains. So, whether corporate or individual, to take
advantage of the power of social networking, you have to understand the connecting
threads of these networks and take the appropriate action.

It is impossible to find a one-size-fits-all approach to such a diverse social media space. This
report simply offers constructive counsel based on our industry experience and the
historical statistics presented by our extensive analysis of China’s online community. It is a
starting point, designed to stimulate discussion and enhance our collective understanding.

3.1.1 Classifying social netizens
A social network is generally organic. That is, naturally formed and loosely structured, with a
relatively flat hierarchy and little bureaucracy. Based on influence, netizens on social
network can be roughly divided into 3 categories:
Net Star: They have huge influence and although the content they directly contribute may
be limited, their words and actions can ignite hot topics.
• Weblebrities: People who are unknown to the wider public before they become
famous online. Netizens include Sister Furong, Brother Sharp and Xiaopang.
• Celebrities: Real-life icons who have adopted social media. People like 80’s idol
Hanhan, famous real estate developer Renzhiqiang and superstar Yaochen.
Efluencer: Proficient in net language and very active within the online community; they’ve
not only been instrumental in building but also in expanding the influence of net culture.
Efluencers’ pivotal role within social networks will be the subject of greater focus later .
Spectators: Like any crowd, they are large in volume and difficult to differentiate. They tend
to be passive within social networks, rarely posting and may post anonymously.
• Internal Spectators : The registered members of an Internet community who spend
most of their time lurking. They only participate in the hottest of topics.
• External Spectators : Not registered to an Internet community, they identify
relevant topics through reference on other platforms or by their peers.



3.1.2 The interaction of netizens on social networks
When plotting the interaction on social networks, there are essentially two axes:
conversation and activity. Conversation is about opinions expressed and emotions
exchanged; posting, forwarding, replying, supporting and voting. Activities generally occur
spontaneously and are initiated by influential netizens or by the overall community but can
be sparked by a third party. By activity we mean things like offline gatherings, brand
promotions and specific tasks like homework, grabbing floor and holding quizzes.

The Axis of Conversation: First, someone (most often a net star or an efluencer) initiates a
conversation by posting a new topic or forwarding others’ post. Some netizens will
participate in the discussion by replying to this post or voting on it, while others will simply
observe. The number of replies or votes reflects netizens’ passion for participating in the
overall discussion. The number of likes or views reflects the exposure of the topic.

The Axis of Activity: There are essentially two types of social activities: brand sponsored
and consumer-organized. Brand activities are usually launched via public advertising and
then forwarded by efluencers. As it usually requires a certain degree of authority and
relatively wide appeal to initiate and organize an activity, most initiators are either net stars
or efluencers. They may use private messages to pass information to key individuals, assign
specific tasks or facilitate offline events.

Figure 3-1 The connecting
threads of personal relationship
within a Chinese social network

Note: The social network in this
instance refers to the communication
and interaction network of netizens on
a social media platform.
Source: CIC



3.2 A brief history of China’s weblebrities
In order to distinguish from real-life celebrities, we intend to only discuss net stars in a
relatively narrow sense; weblebrities known to numerous netizens, with great influence on
network platforms like BBS, blog, microblog, SNS, video sites and so on. Weblebrities and
social media platforms certainly complement each other. There have been considerable
discussions and conclusions drawn on the Internet about the development stages of net
stars already. Based on those existing online discussions and CIC’s extensive observation of
the transition of social media platforms, we can divide the development of net star culture
into three stages; text age, image age and multimedia age.

3.2.1 Net stars of the text age (pre-2004)
In the incubation period of Chinese social media, BBS and blog were netizens’ main public
communication platforms. Those were the days of dial-up Internet access, so text was the
main form of expression. The common feature of net stars of this generation is a high
degree of literacy. Representatives of the text age include Pizicai, Ningcaishen, Lixunhuan,
Annebaby, Murong Xuecun and Jinhezai etc.

Figure 3-2 Net Stars of the Text Age

Pizicai, real name Murong Xuecun Annebaby, real name
Caizhiheng, is popular gained strong netizen Lijie, is famous for
due to Internet following with “Say Goodbye to
fiction “First Intimate “Chengdu, Leave Me Vivian”.
Contact”. Alone Tonight”.

3.2.2 Net stars of the image age (from 2004 to 2006)
In the cultivation period of Chinese social media, photo sharing became more and more
important to social media platforms in line with improvements in Internet speed and
bandwidth. Net stars of this generation are like cover figures on fashion magazines. Sister
Furong, Tianxian mm, Gongjiao mm, Eryue Yatou, Xiaopang and Liumangyan appeared one
after another.



Figure 3-3 Net Stars of the Image Age

Tianxian mm - “Self-Drive Xiaopang, whose photo
Sister Furong applied for
Tour in Sichuan & Xizang by was posted on the
Qinghua Universitiy’s
Bicycle: Come Across Tianxian Internet by netizens,
postgraduate program,
MM?!” was forwarded like aroused a spoofing wave
beginning to post numerous
crazy and in one night, almost immediately,
pictures on the Shuimu
Tianxian mm took up a spreading quickly across
Qinghua BBS in 2004,
prominent position on various BBS.
causing a sensation.
various Chinese websites.

3.2.3 Net stars of the multimedia age (from 2007 to 2010)
In the development and proliferation period of Chinese social media, multimedia like video
sites, microblogs and SNS became the mainstream. In this period, social events and Internet-
marketers (so-called Tui Shou) were the driving force behind the new generation of net star,
including Fengjie, Brother Sharp and Xuri Yanggang.
Figure 3-4 Net Stars of the Broadband Age

Fengjie was well known for a Xuri Yanggang, a musical
series of shocking marriage- group formed by wandering
Brother Sharp, a beggar on singers, were snapped by “Pai
seeking statements on the the street in Ningbo, was
Internet and on TV. Ke” (people who like to take
famous for a post on photos), uploaded a video of
Statements like, “I have been Tianya BBS – “SecKill The
extensively reading from the migrant workers’ version of
Most Handsome Passerby song “In Spring” and
age of nine … no one can in the World”.
surpass me in 600 years, 300 suddenly, Xuri Yanggang
years ahead and 300 years were starring at the Chinese
behind.” New Year Television Gala.



3.3 Styles of the Chinese social efluencer
Efluencers are the main contributors of IWOM and social networks are already an
indispensable part of their lives. In order to more thoroughly understand the personality and
behavior of efluencers, we picked 300 active online community users (those registered over
a year ago and who post more than industry average) from CIC’s social media database
(including various Internet communities across the 6 most popular industries; auto, mobile
phones, sports, skincare, luxury and baby care). We then carried out an online survey in
September and October of 2010. Our aim was to present efluencers in China through three
key aspects: demographics, behavior and persona.

3.3.1 Who are the efluencers on social network?
In order to more clearly define the features of an efluencer, we compared them with
ordinary netizens. In doing so, we found that they come from ordinary netizens but they are
more social media savvy. They are the pioneers and dedicated practitioners of social
networking.
Hours spent on the Internet: On average, efluencers spend 55 hours a week on the Internet.
That is approximately 3 times the overall netizens average, which is 18.3 hours. On average,
an efluencer spends 5-10 hours on the Internet every day. 41.9% of these efluencers spend
over 8 hours on the Internet every day. For them, surfing the Internet is like work. The only
difference is that the former has no weekends.

Figure 3-5 Hours Efluencers Spent
Online Everyday

Data source: “CIC 2010 efluencer
survey” ; Sample size=300



Income: More than half (52.3%) of ordinary netizens have a monthly income below CNY
1500, one possible explanation is that the proportion of students and unemployed people
are comparatively high (37.2%). In comparison, the incomes of efluencers are generally
much higher, not only because most efluencers are gainfully employed but also due to the
fact that social media is more developed in first-tier and second-tier cities. Highlighting this
was the fact that people from Beijing, Shanghai, and Guangzhou accounted for 41.9% of this
survey.
Education: Most ordinary netizens are educated to high school level or below (accounting
for 76.9%), while most efluencers have a college degree or above (89.5%). This result backs
up the demand for efluencers’ knowledge and their communication ability.
Occupations: Efluencers are mainly company staff (staff members and managers add up to
57.6%, about two times the percentage amongst all netizens - 26.9%). However, students
account for only 8.1% of efluencers, far less than the proportion in ordinary netizens
(30.6%). Although students are rich in free time, their lack of practical knowledge and
experience hampers their online appeal.
Figure 3-6 The Different Characteristics of Efluencers and Ordinary Netizens

Statistics source:
Ordinary netizens
statistics come from
The 27th Statistical
Survey Report about
Internet Development
in China (2010) by
CNNIC; Efluencers
statistics are from “CIC
2010 efluencer
survey” ; Sample
size=300

In general, China’s efluencers are mainly white collar workers from first-tier and second-tier
cities. They’ve received a higher education and are good communicators with well
developed interpersonal skills and practical social experience. They have a stable income,
strong purchasing power and have made the Internet a big part of their life. In Chinese,
they’re the “四有达人” – the “Full fledged efluencers” – as in, they have presentation skills,
have a sharing spirit, have purchasing power and have a desire to be online.



3.3.2 Strengths of the social efluencer
The “Full fledged efluencers” are dedicated supporters of IWOM. On one hand, they rely on
IWOM for the information about brands and products that drive their purchasing decisions.
On the other, they are the most loyal contributors to IWOM and are willing to share their
knowledge and experience with a large network of online friends and followers. Therefore
they have much more knowledge and reliance on IWOM than ordinary netizens.

Efluencers have a deeper understanding of the Internet and show more trust in IWOM
accordingly
On a scale of one to ten, the credibility of IWOM ranks about 8 to efluencers, closely
following recommendations from friends and family (8.5) but higher than the news or
authorities (7). The “CIC 2009 Netizen Survey” shows the credibility of IWOM amongst
ordinary netizens is scored about 6, slightly below that of the news or authorities. This might
imply that the higher a netizen’s knowledge of the Internet, the greater their trust in IWOM.
IWOM is getting more and more important when our younger generation enters society. For
example, the 80s, who grew up with Internet, and 90s, who grew up with social media. At
the same time, salesmen and advertising’s marginal utility will decrease continuously. For
enterprises and brands, it presents not only a big challenge, but also a big opportunity.

Figure2.3 Credibility of IWOM

Friends and families 8.5

IWOM 8.0

News /authorities 7.0

Sales person 5.3

Ads 5.0

Data source: “CIC 2010 efluencer survey” ; Sample size=300



Efluencers trust reviews of brands and products on BBS, blogs and microblogs whose
focus is on knowledge and information sharing, while remaining professional and neutral
For efluencers, the credibility of professional BBS, blogs and microblogs is equal to
recommendations from friends and family members. As such, the netizens on these
platforms can be counted amongst their trusted friends. The credibility of customer review
websites, Wiki, Q&A websites, brand’s official sites and SNS is scored 8 and above, so they
can be trusted too. In comparison, the credibility of IWOM on e-commerce sites, group
purchase sites and video sites remains a little bit lower because they may be driven by
commercial interests. The credibility of LBS and social bookmarking is pretty low because
there is little content and relatively loose relationships.

Figure 2.4 Efluencer’s Platform Preference

Professional BBS 8.6
Blog 8.5
Microblog 8.4
Customer review 8.2
Wiki 8.1
Q&A 8.1
Official sites 8.0
SNS 8.0
E-commerce 7.9
LBS 7.7
Group buy 7.6
Video sites 7.6
Social bookmarks 7.5

Data source: ““CIC 2010 efluencer survey” ; sample size=300



Efluencers not only gain knowledge of brands and products via IWOM, they are also early
adopters of trends and the first to spot special offers
With reference to Philip Kotler’s theory about consumers purchasing decision making
process, in CIC 2009 White Paper “Making sense of IWOM”, we divided consumers’
purchasing decision process into 6 steps: Needs Arousal, Brand Awareness, Selection of
Alternatives, Evaluation of Alternatives, Purchase Decision and Post-purchase Behaviors.

Knowing the product before making a purchase: In “CIC 2009 Netizen Survey”, 34.6% of
ordinary netizens had needs aroused by IWOM and 56.3% got to know brands through
IWOM. In “CIC 2010 Efluencer Survey”, the ratios of these two were up to 56.2% and 62.4%
respectively. As such, IWOM has much potential in arousing consumer needs and then
boosting consumption.

Comparisons during the purchasing process: The results of efluencer study show that
efluencers are good at using social media to form a personalized purchasing plan.

The purchasing decision and review: IWOM plays a decisive role in forming final purchase
decision for both ordinary netizens and efluencers (about 60%). Also, almost 50% of
netizens will inquire or share usage experience after purchasing. It suggests that social
media can be a highly efficient platform or tool for after-sale service and customer
relationship management.

Figure 3-9 Purchasing Decision Process: Ordinary Netizens Vs. Efluencers

Ordinary
netizens 56.3% 58.7%
47.5%
41.5% 36.2%
34.6%

Post-
Needs Brand Selection of Evaluation of Purchase
purchase
Arousal Awareness Alternatives Alternatives Decision
Behaviors

52.9% 47.6%
56.2% 53.3% 57.6%
62.4%
Efluencers
Data source: Ordinary netizens data from “CIC 2009 Netizen Survey” , sample size=520; Efluencers data from
“CIC 2010 Efluencer Survey” , sample size=300;



Efluencers are loyal IWOM contributors, willing to share knowledge and experience
For efluencers, usage experience sharing posts rank top (nearly 80%). Product evaluation
posts and shai posts are second and third place respectively (above 50%).

Figure3-10 Efluencer Post Rankings by Topic Angle

Usage experience sharing 79.9%

Product evaluation 54.4%

'Shai' products 53.8%

Q&A 47.9%

Disclose bad experience 30.8%

Brand campaign 23.7%

Forwarded news 18.3%

Brand story 15.4%

Advertorial 8.9%

Data source: “CIC 2010 efluencer survey” , sample size=300

Although a virtual identity can make people question the credibility of IWOM, social
efluencers hold themselves up as examples; if you have the knowledge and are good at
utilizing Internet tools, IWOM can not only be trusted but relied upon. We believe that, as
netizens increase their level of understanding, more will become efluencers. The average
netizen’s use of social media and IWOM will evolve.



Segmentation of efluencers’ roles
Although efluencers do not command the same attention as net stars, they tend to have
distinct personalities. In the “CIC 2010 efluencer survey”, we found that there were two key
motives driving efluencers to participate in the social network: social influence and self
expression. On one hand, many efluencers care about their influence in the whole social
network, which is the internal motive to be efluencers. On the other hand, many efluencers
prefer self expression and want to be outstanding, which is the external characteristics of
those efluencers. Based on these two dimensions, we divided efluencers into 7 categories.

Figure 3-11 Seven
Categories of Efluencer

Data source: “CIC 2010
efluencer survey” , sample
size=300
The number in the circle stands
for ratios of each category (for
reference only)

Efluencers more interested in gaining social influence than self-expression
The Pundit: logic based commentators, using objective, professional language
The Know-all: inclined to learn and share knowledge
The Moderator: take on management responsibility within the Internet community
Efluencers who care more about self expression than social influence
Fans: Passionate and emotional about brands or celebrities
Trend-setters: at the forefront of social networking, digging out freshest news and
spreading gossip
Stars: sensational in style, commanding influence and notoriety within the community
Knowbies:
well versed in Internet language and familiar with communities. They sometimes show
off the most current net trends, protective of their status in the Internet communities.



In the following section, we will examine the similarities and differences among these seven
types of efluencers using survey statistics. Although roles differ in terms of degree of
activity, these efluencers are important parts of the social media stage, with key
characteristics and inescapable influence.

Figure 3-12 Efluencer Demographics

Data source: “CIC 2010 efluencer survey” , sample size=300

• Reflecting real life, to achieve an elevated station on the social Internet, like that of a
moderator, you need to be qualified. As such, netizens below the age of 20 are rare and in
some roles, pundits for example, 70% will have a bachelor degree or above.
• Among fans and stars, young women account for the majority. Those with a professional
training college or below education are more likely to become fans.
• Knowbies are mainly young men, most are below 30 and 60% have a bachelor degree or
above.



In order to help us understand the characteristics of these different roles more vividly, we
will use the following figure to illustrate:

Figure 3-13 Efluencer Persona
Moderators: Mainly over 20, they Based on the Internet community’s structure;
are enthusiastic, enjoy the moderators are easiest to identify, stars have
administrative authority and the largest influence and know-alls are
proactively maintain the
community.
everywhere. In terms of network content;
pundits focus more on specific topics and in-
Pundit: Compared with depth discussion, trend-setters pay attention
moderators, they tend to be more to fresh and funny information and fans
mature, more highly educated and
keen on answering questions for discuss their favorite brands or celebrities.
other netizens. Knowbies often use the latest Internet
language and are the most sensitive to latest
Know-alls: Tend to follow online
trends within the community. They’re also the
discussion closely and when they
speak, they give mature key blending ingredient of the community
consideration to all aspects of atmosphere.
a question.

Star: Predominantly female, they 3.4 Social efluencers workshop
have great influence within the
community, preferring to express If we consider social networking in China to
their views and evaluate products. be a tree, net stars are the flowers, efluencers
are the trunk and the spectators are the
leaves. With that in mind, we have to find the
Fans: Mainly young women, under best way to encourage development of the
30, less well educated and more efluencers, stimulating their creativity and
driven to make friends.
promoting growth across the network.

Trend-setters: More highly
So, after the “CIC 2010 efluencer survey”, we
educated, they’re keen on invited seven different types of efluencers to
releasing the latest information, discuss their views on social media via online
like secret pictures of new cars. community. We will return to this in the
second installment of our “From Social Media
Knowbies: Well versed in net to Social Business” White Paper series topic
language and familiar with the
community. Mainly young men, two, “Online efluencer Workshop”.
their emphasis is on knowledge
and improving their skills.


About CIC

About CIC
CIC is China's leading social business intelligence provider. CIC enables
businesses to fully leverage the power of social media and (Internet Word of
Mouth) IWOM intelligence across the organization. Since coining the term
IWOM in 2004, CIC has pioneered the industry to help companies meet their
social media marketing and social business needs by providing customized
research, consulting services, syndicated reports, as well as technical
solutions and platforms all via an objective, third party perspective. In addition
to helping companies leverage social media intelligence for more informed
decisions, CIC is monetizing the social business industry in China by creating an
integrated social business support system.

CIC utilizes its own patent pending technology to capture millions of online
conversations and “makes sense of the buzz” by assembling them into easy to
understand intelligence and provides interpretation which informs strategic
decisions and leads to action. CIC gathers and mines over 100 million naturally
occurring consumer comments every month from a range of uniquely Chinese
social media platforms including blogs, BBS and social network sites and applies
its unique, China-derived methodology and indexes to provide a detailed and
comprehensive picture of the social media landscape and its implications for
business. CIC has well over 2 billion mentions of brands and products from well
over 1 billion consumer comments that have been indexed and archived.

CIC has strong, long term retainer relationships with multinational agencies and
Fortune 500 companies, including Nike, Pepsi, Intel, L‘Oreal Group, BMW, P&G,
Unilever and many more.

Copyright Statement
This report is copyrighted material owned by CIC. Any improper use of this
document or its content will be considered a violation of CIC IP copyright and
CIC has the right to take legal action.


CIC white paper archive

Find more CIC white papers on our CIC slideshare site:
www.slideshare.net/CIC_China

2010: Chinese Consumer Report (in collaboration with Roland Berger) | view

2010: Internet word of mouth proven to have impact (CIC and R3) | view

2010: ExpoSay: Shanghai Expo tickets are the focus of intense buzz in China's Social
Media (Edition_1) | view

2009: Making Sense of IWOM
Topic 1: IWOM White Paper on the Role of Internet Word of Mouth in Driving
Purchase Decisions | view
Topic 2: How IWOM is generated and disseminated | view
Topic 3: How Brands Can Participate in Online Communities | view

2009: Chinese Consumer Report (in collaboration with Roland Berger) | view

2008: The Internet is THE community
Topic 1: The Chinese IWOM Landscape | view
Topic 2: Alternative Ways to Measure Internet Community Dynamics | view
Topic 3: The Diversity of Chinese Net Language | view
Topic 4: Reshaping the Relationship between Brands and Consumers | view

2008: Tuning into Sports IWOM | view

2008: Tuning into Notebook IWOM | view

2007: What's Driving Auto Buzz | view

2007: The Talk About Phones | view

2007: Word of Health: China | view


Contact us

Shanghai:
Suite 108, Block A, UDC Innovative Plaza, 125 Jiangsu North Road
Shanghai, China, 200042
Tel: 021-5237 3860 | Fax: 021-5237 3632

江苏北路125号华联创意广场A栋108室, 上海, 200042, 中国
电话: 021-5237 3860 | 传真: 021-5237 3632

Beijing:
1006 / 10F, Block C, No. 60, Dongsihuanzhong Road, Chaoyang District
Beijing, China, 100025

朝阳区东四环中路60号远洋国际中心C座1006室 (100025), 北京, 100025, 中国

Contact us: info@cicdata.com

t.sina.com.cn/seeisee www.linkedin.com/companies/359113

www.douban.com/host/cic www.jiepang.com/cic

www.seeisee.com @cicdata
www.seeisee.com/sam

www.tudou.com/home/iwomchina CIC_CN

www.slideshare.net/CIC_China


Site: www.ciccorporate.com
Blog: www.seeisee.com
Founder Blog: www.seeisee.com/sam
IWOMmaster platform: www.iwommaster.com
IWOMdiscover platform: discover.iwommaster.com
IWOMexplorer platform: explorer.iwommaster.com


CIC 2011 White Paper: From Social Media to Social Business Topic 1: An Overview of the Evolution of Chinese Social Media

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