The Negotiation

Justin Downes returns to The Negotiation podcast to reflect on the recently concluded ski season in China and to discuss his new role in Hokkaido, Japan. With a career dedicated to advancing winter sports in Asia, Justin has been instrumental in the infrastructural development of ski resorts in China, contributing significantly to the country’s readiness for the 2022 Winter Olympics. In this episode, Justin provides an overview of the performance of the skiing season in China, talks about the world's largest indoor skiing resort in Shanghai, and compares the ski markets of China and Japan.

Discussion Points:

• Overview of Axis Leisure Management and its impact on skiing in China.
• Performance insights from the recent ski season in China.
• Details on the world's largest indoor skiing resort in Shanghai and its significance in the growth of the industry.
• The influence of the Asian Winter Games on the popularization of winter sports in China and other Asian countries.
• Assessment of China as a mature or emerging skiing market.
• Comparisons between the skiing industries in China and Japan, highlighting unique aspects and challenges in both markets.

In this episode of The Negotiation podcast, Todd Embley sits down with Peter Park, WPIC’s latest addition in Melbourne and a recognized expert in Australia’s consumer brand sector and the APAC e-commerce landscape. Peter delves into his professional journey, his role at WPIC, and why the firm is an excellent partner for Australian consumer brands, especially in the F&B and health supplements sectors. He shares his insights on the rising trends in these categories. He highlights the untapped potential in markets like South Korea and Vietnam, discussing strategies for Australian brands to make impactful entries into these markets. Additionally, Peter spices up the conversation with an intriguing discussion about the whisky market across APAC.

Discussion Points:

• Peter's professional background and his recent transition to WPIC.
• The role of WPIC in bolstering Australian consumer brands in the APAC region.
• Emerging trends in the F&B and health supplements sectors across APAC.
• Detailed exploration of South Korea as an underrated market for Australian brands.
• Opportunities for Australian brands in Vietnam and strategies for market entry.
• The growing popularity of whisky across APAC and its potential as a market for Australian exporters.

In this episode of The Negotiation podcast, host Todd Embley speaks with Joe Mazur, Senior Analyst at Trivium China, on the complexities of the U.S.-China relationship in the early days of the second Trump administration. 
Joe offers a comprehensive overview of the trade measures implemented by the U.S. since Donald Trump's re-election. He analyzes the motives behind the tariffs and their potential to escalate into more aggressive actions. He also analyzes China’s response to U.S. tariffs, which included a series of non-reciprocal measures. Joe explains their strategic significance and implications for future negotiations.
The conversation also touches on recent U.S. restrictions in the semiconductor industry, highlighting the critical role this sector plays in the broader technological conflict between the U.S. and China and the closure of the de minimis exemption for Chinese goods. 
Listeners will gain a comprehensive understanding of the current state and potential future of US-China economic relations, the strategic motivations behind recent policies, and the implications for companies from various sectors.

Discussion Points:

• Overview of U.S. trade measures since Trump's reelection and their strategic underpinnings.
• Analysis of China's non-reciprocal countermeasures and their potential strategic goals.
• Impact of U.S. policies on the critical semiconductor industry and the broader tech conflict.
• Insights into the closure of the de minimis exemption for Chinese goods and its significance.
• Discussion on the brief suspension of Chinese packages by the U.S. Postal Service and its implications.

In this episode of The Negotiation podcast, Todd Embley has a captivating conversation with Elyse Ribbons, a seasoned expert in the dynamics of influencer marketing in China. Elyse shares her extensive experience and insights into the unique landscape of social media and influencer engagement in China, highlighting the intricacies of platforms like RedNote (Xiaohongshu) and Douyin.

The discussion opens with Elyse recounting her journey and how she became deeply involved with China, setting the stage for her dive into the digital marketing landscape there. She breaks down the major platforms used for influencer marketing, comparing them to their Western counterparts, and dives deep into the particularities of RED and Douyin, explaining their specific features and the demographics they appeal to.

Elyse discusses the financial aspects of engaging with influencers, including the costs associated with different types of content creation, such as live streaming. She clarifies the distinctions between Key Opinion Leaders (KOLs) and Key Opinion Consumers (KOCs) and offers advice on how brands can select the right influencers to maximize the success of their marketing campaigns.

Notably, Elyse touches on the latest trends in influencer marketing within China and provides her perspective on the future of international brands in the Chinese market amidst US-China tensions. This episode is a must-listen for anyone looking to understand the evolving dynamics of influencer marketing in China and how to navigate this complex but rewarding space effectively.

Discussion Points:

• Elyse's personal journey and initial engagement with China.
• Detailed analysis of major Chinese platforms for influencer marketing.
• Specific features and demographics of RED and Douyin.
• Cost considerations in influencer engagements.
• Differences and impacts of KOLs versus KOCs.
• Strategies for selecting the right influencers for marketing campaigns.
• Emerging trends in the influencer marketing sector in China.
• Future outlook for international brands in the Chinese market.

In this episode of the Negotiation Podcast, Todd Embley interviews David Nottingham, the EU General Manager for IPinYou, a leading Chinese martech company. David shares his journey from Southeast Asia to the ad tech world, discussing the unique challenges and opportunities within the Chinese digital ecosystem. He explains the workings of IPinYou, its proprietary technology, and how it compares to Western ad tech platforms. The conversation delves into the paid media landscape in China, the importance of audience data, and the rise of platforms like Xiao Hongxu. David also highlights the competitive nature of advertising in China and the regulatory environment that shapes the industry.

Takeaways

• David Nottingham has been with IPNU for seven years, leveraging his background in Southeast Asia.
• IPNU is a leading Chinese ad tech company with proprietary technology for media buying.
• The Chinese digital ecosystem is closed, requiring tailored ad tech solutions.
• Western companies face challenges entering the Chinese market due to regulations.
• Audience targeting in China relies heavily on device IDs rather than cookies.
• Xiao Hongxu has gained popularity as a social commerce platform in China.
• The competitive landscape in Chinese advertising requires unique data strategies.
• Walled gardens in China limit cross-platform advertising opportunities.
• The Chinese government is regulating super apps to reduce their market power.
• Understanding the nuances of the Chinese market is crucial for successful advertising.

In this episode of The Negotiation podcast, host Todd Embley is joined once again by Olivia Plotnick, a seasoned expert in China marketing and the founder of Wai Social. Today, they dive into the explosion of Xiaohongshu, or “Red Note”, in the United States because of the impending ban of TikTok.

Olivia begins with a detailed overview of the current buzz surrounding "Red Note”, explaining why TikTok users are flocking to this app amidst concerns over the potential ban in the U.S. She explains the unique features of the platform and highlights the nature of interactions between American and Chinese users on the platform. Olivia shares amusing trends emerging from these interactions and comments on their significance against the backdrop of current geopolitical tensions.

The discussion also explores the challenges Xiaohongshu faces as it navigates its newfound popularity in the U.S., including the complex decisions the platform must make to manage this surge. Olivia provides insights into how both Chinese and international brands might benefit from this trend, the scale of American user adoption, and the sustainability of this growth.

Discussion Points:

1. Overview and unique aspects of Xiaohongshu ("Red Note").
2. The explosion of Red Note in the U.S. due to the potential TikTok ban.
3. The dynamics between American and Chinese users on the platform.
4. Challenges for Xiaohongshu amid increased U.S. user activity.
5. Brand strategies in response to the platform's rising popularity.
6. Long-term implications for Xiaohongshu’s growth and user engagement.

In this episode of The Negotiation Podcast, Todd Embley interviews Cynthia Dearin, founder of Dearin and Associates, who shares her unique career journey from diplomat to management consultant. She discusses the importance of global expansion for businesses, the services offered by her company, and the consumer sectors in Australia that are poised for success overseas. Cynthia emphasizes the need for expert guidance in internationalization and identifies promising growth markets for Australian companies. Todd and Cynthia also discuss the complexities and opportunities of international business expansion, particularly in the APAC region. They explore market dynamics, consumer expectations, and the importance of thorough market research. Cynthia outlines a strategic blueprint for successful international expansion, emphasizing the need to understand local markets, cultural nuances, and regulatory requirements. The discussion also highlights common challenges brands face entering new markets and the critical role of data-driven decision-making in overcoming these obstacles.

Takeaways

• Cynthia's journey from diplomat to consultant highlights the importance of adaptability.
• Global expansion can significantly increase a company's revenue and profitability.
• Expertise in international markets is crucial for successful expansion.
• Australian products are perceived as high quality and trustworthy in overseas markets.
• Cynthia's company helps businesses create international strategies and navigate global markets.
• Understanding cultural differences is key to successful marketing abroad.
• Consumer sectors like food, fashion, and skincare have great potential for Australian exports.
• Market analysis can help businesses identify the best growth opportunities.
• The importance of storytelling in marketing Australian products overseas.
• Companies should focus on markets with overlapping opportunities, risk, and profitability. This is a big, chunky market that is perceived as difficult.
• You have to twin market size with profitability.
• Consumer expectations in China are very high.
• Same-day delivery is a recent thing in Australia.
• You can't just drift through international expansion.
• Understanding the ideal client is crucial.
• Market research should not be based on guesswork.
• Compliance with local regulations is essential.
• Pricing strategy must consider the entire value chain.
• Cultural understanding is key to successful marketing.

In this episode of The Negotiation podcast, host Todd Embley sits down with Anton Lapunov, WPIC’s Key Account Manager and Strategy Lead for Japan. Anton shares his extensive experience and insights into the unique aspects of Japan's e-commerce landscape—and offers strategic advice for brands looking to enter this lucrative market.

Anton begins by detailing his journey from China to Japan. He provides a comprehensive overview of Japan’s e-commerce ecosystem, highlighting the major platforms, market penetration rates, and consumer expectations around delivery times which differ significantly from those in the West and China.

The discussion shifts to comparing Rakuten with major Western and Chinese platforms like Amazon, Temu, Tmall, and JD.com, outlining key operational and strategic differences. Anton also draws on his experience in China to compare and contrast the e-commerce environments in China and Japan, noting cultural and logistical nuances.

Further, Anton discusses emerging product categories that WPIC focuses on within the Japanese market and explores the extent to which social commerce and live-streaming have caught on in Japan. He outlines the main digital marketing channels that effectively drive e-commerce sales and brand awareness in Japan.

To conclude, Anton lays out a strategic blueprint for foreign brands aiming to enter the Japanese market and highlights current trends and future opportunities within this diverse e-commerce landscape.

Discussion Points:

• Anton Lapunov's career transition from China to Japan and his role in shaping e-commerce strategies.
• Detailed analysis of Japan's e-commerce landscape, including key players and consumer behaviors.
• Comparison of Japanese e-commerce platforms with those in the West and China.
• The rise of social commerce and digital marketing trends in Japan.
• Strategic entry points and growth opportunities for foreign brands in the Japanese market.

In this episode of The Negotiation podcast, Todd Embley talks with Jeff Crowther, Executive Director of the Health Products Association - China (HPA-China). Jeff shares his insights into the dynamic world of dietary supplements and nutritional ingredients in China, providing a deeper understanding of the market's growth, consumer trends, and regulatory landscape.

Jeff begins by recounting his journey from the US to China, detailing how his passion for studying China and health products turned into a career that led him to his current role at HPA-China. He discusses the mission of HPA-China and its efforts to foster the growth of the health products industry within the region.

The discussion then moves to an overview of China’s natural health products market, highlighting why it is one of the fastest-growing sectors. Jeff identifies key consumer trends, such as increasing health awareness and the rising demand for natural and safe supplements, which are driving the market.

Jeff also addresses the regulatory challenges that foreign brands face when entering the Chinese market and offers valuable insights into leveraging cross-border e-commerce as an effective market entry strategy. This channel allows international brands to bypass many traditional regulatory hurdles, making it an attractive option for new entrants.

Discussion Points:

• Jeff Crowther's career trajectory and his role in bridging the gap between international health product companies and the Chinese market.
• An overview of the natural health products market in China and the factors contributing to its rapid growth.
• Consumer trends that are shaping the demand for dietary supplements in China.
• The challenges international brands face with China’s regulatory environment.
• The strategic advantage of using cross-border e-commerce to enter the Chinese market.

In this episode of The Negotiation, Todd Embley speaks with Jacob Cooke, co-founder and CEO of WPIC Marketing and Technologies, about the recent Singles Day shopping festival in China. They discuss the evolution of Singles Day, its performance in 2024, innovations in e-commerce, logistics challenges, and the competitive landscape of e-commerce platforms in China. Jacob shares insights on consumer behavior, marketing strategies, and the future of sales events in the region.

Takeaways

• Singles Day has evolved into a major shopping festival.
• 2024 saw a 16% increase in sales compared to last year.
• Collectibles and premium products gained popularity this year.
• Alibaba made significant changes to support brands.
• China's e-commerce relies heavily on direct bank payments, not credit cards.
• Logistics during Singles Day has improved with a multi-day approach.
• Alibaba and JD dominate the Singles Day market.
• Consumer behavior is shifting towards higher-quality products.
• Future sales events include 12-12 and Women's Day in March.
• The competitive landscape is adapting with innovative strategies.