Brand strategy: using the present perfect to discuss market trends

B2
90 min
Premium
1

Think about these questions before watching. Share your ideas with a partner.

  1. Think of a brand that has become extremely popular recently, especially with younger consumers. What do you think makes its marketing strategy so effective?
  2. When a global brand enters your country, what are some of the best ways it can adapt to the local culture and connect with local consumers?
  3. To what extent does a product's country of origin influence your purchasing decisions? Can you think of a time when this was a significant factor for you?
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Watch the video carefully. Pay attention to the main ideas and key details.

Video script106 segments · click a timestamp to jump

- China once promised growth.

Now, it's pushing back against America's biggest brands.

In March, Nike reported

that its quarterly sales in China

had fallen 17% from a year earlier.

While many American brands are struggling in China

hit by tough local competition

and factors like rising anti-American sentiment,

this unlikely American brand is doing quite well.

Crocs' revenue in China has grown more than 30%

during the most recent quarter,

while its North America revenue declined by around 6.5%.

The key?

Crocs has won over China's Gen Z,

one of the most lucrative and expressive consumer segments.

- Just match my vibes.

- This slogan is one reason

why Crocs has been so successful in China.

They've adapted their global slogan, Come As You Are,

to ,

which means born to be free.

That message, born to be free,

really appeals to Chinese young people

who are always looking for more opportunities

to self-express

in a fairly constrained political environment.

As a foreign brand,

understanding what matters to young Chinese consumers

and connecting with them directly on social media

has proven to be a winning strategy.

- [Jon] Another game changer has been Jibbitz.

These colorful charms

let young consumers make their Crocs their own.

- Gen Z in China are trying to negotiate

this growing cultural confidence, this new Chinese identity.

And when you give them the ability

to kind of demonstrate who they are,

their favorite passions in terms of the Jibbitz,

which are then kind of put into the shoe itself,

you know, that's a really powerful product.

- Geopolitical tensions, especially with the US,

and a weaker economy, have pushed Chinese consumers

to look beyond foreign brands.

But smart marketing has helped Crocs

shift the spotlight away from its American roots.

There are no signs that it's American,

no American symbols in the store.

Instead, what we have are local celebrity endorsers,

people like Bai Lu, a famous Chinese actress,

who isn't as well-known outside of the region.

What Bai Lu is wearing, Platform Clogs,

are one of the brand's most popular products in China.

They're seen as a fashionable

and comfortable alternative to heels.

- You know, the shape, it's kind of, I don't know,

it's kind of like a vintage style, so I like it.

- What Crocs has done is really to tap

into the new aspirations of the Chinese Gen Z

at a time when there are a lot of new Chinese designers,

Chinese creators, who are rising

to the forefront of fashion, beauty,

invent interiors across the board.

- [Jon] As a result, Crocs has been working with designers

who are plugged into what consumers are interested in,

like Chinese-born London-based Feng Chen Wang,

known for her future modern aesthetic.

Playing on Crocs' theme of customization,

Wang designed a Siren Clog with removable leather shaft,

allowing consumers to turn the shoe into a knee-high boot.

Crocs also partnered with streetwear brand Melting Sadness,

known for its eccentric bunny-themed collaborations.

- [Jon] Crocs has won over China's fashion-savvy consumers

by taking the same approach

as US food and beverage brands, like McDonald's and KFC,

and embracing local tastes.

- KFC and McDonald's,

they deeply understand the Chinese consumer,

their lifestyle priorities,

as well as what's happening in pop culture,

media and entertainment.

KFC recently partnered up

with the consumer tech brand Republic of Gamers

to come up with KFC-exclusive keycaps,

- [Consumer] K, F, C.

- [Alison] Which, you know,

you can put on your mechanical keyboards,

and it really speaks to the big, big cohort of gamers

in the Chinese market.

- [Jon] It's paying off for KFC.

They've got more than 12,000 stores in China right now

versus their roughly 4,000 outlets across the US.

Yum China, which owns KFC,

plans to open 20,000 food and beverage outlets

by the end of next year.

In China's evolving market,

the foreign brands that win aren't the loudest.

They're the ones that listen and adapt.

- The Chinese market moves at what I call China speed,

and global brands need to be able

to take a step back from that

and to really figure out which consumer trend

is worth tapping into and which ones are worth forgoing.

- [Jon] But of course, the most important target consumer

for Crocs right now is my three-year-old daughter,

whose Crocs are getting a makeover.

Hope she likes it.

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Answer these questions in your own words. Support your answers with evidence from the video.

01According to the video, why does the adapted slogan 'Born to be free' appeal so strongly to young people in China?
Sample answerThe video explains that this message appeals to them because they are looking for more opportunities for self-expression within a political environment that is described as 'fairly constrained'.
02In what way have Jibbitz charms helped Crocs connect with Gen Z consumers in China?
Sample answerJibbitz have helped because they allow young consumers to personalize their shoes. The video says this gives them the ability to demonstrate who they are and express their passions, which makes the product feel more personal and powerful.
03How has Crocs strategically managed its brand image to avoid the negative sentiment that has affected other American companies?
Sample answerCrocs has shifted the focus away from its American origins. The video points out that there are no American symbols in their stores, and they use local celebrity endorsers, like the actress Bai Lu, instead of international ones.
04What broader lesson does the success of Crocs and KFC in China offer to other foreign brands?
Sample answerThe main lesson is that foreign brands need to listen to the local market and adapt their products and marketing. They must understand local tastes, pop culture, and lifestyle priorities to succeed, rather than just being the 'loudest' brand.
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Key vocabulary

Vocabulary
These expressions will help you discuss brand strategy and consumer trends more effectively.
Examples
To gain traction — to become popular, accepted, or successful over time.
Usage note: This phrase is often used to describe a new product, idea, or movement that is starting to catch on. For example, 'The new marketing campaign is finally starting to gain traction with younger consumers.'
To resonate with (an audience) — to be meaningful or emotionally impactful to a particular group of people.
Usage note: A common collocation in marketing. It's a more sophisticated way to say an idea 'appeals to' or 'connects with' someone. For example, 'The brand's message of authenticity really resonates with Gen Z.'
To carve out a niche — to create a special, often profitable, position for a product or company in the market.
Usage note: This idiom suggests a deliberate strategy to find and serve a specific market segment that larger competitors might be ignoring. For example, 'They carved out a niche by selling high-quality, sustainable footwear.'
To tap into (a market/trend) — to access and successfully use a large or growing resource, market, or trend for your benefit.
Usage note: This phrasal verb implies successfully connecting with an existing source of demand or interest. For example, 'Crocs managed to tap into the desire for self-expression among young people.'
A competitive edge — an advantage that a business has over its competitors.
Usage note: You can 'have', 'gain', or 'maintain' a competitive edge. This advantage could be a unique product, lower prices, or a stronger brand identity. For example, 'Localizing their marketing gave them a competitive edge in the Chinese market.'
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Decide if each statement is true or false. Correct the false ones.

01The video suggests that KFC's success in China is partly due to collaborations with popular technology brands.
02Crocs has collaborated with a London-based designer to create a shoe that can be transformed into a knee-high boot.
03KFC currently operates more stores in the United States than it does in China.
04While Crocs' revenue in China has grown, its sales in North America have also seen a slight increase.
05Crocs used its global slogan 'Come As You Are' in China without making any changes.
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Complete the sentences with words from the box. One word is extra.

Word bank
01For a global brand to succeed, its advertising must with the local culture and values.
02By focusing only on high-performance athletic wear for women, the company created a profitable for itself.
03Despite a slow start, the new social media platform is finally gaining and attracting more users every day.
04Their innovative use of AI in customer service has given them a significant competitive over their rivals.
05Successful brands are often the ones that can effectively current social trends and consumer desires.
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Choose the best answer based on what you heard in the video.

01What does the video highlight about the recent financial performance of American brands in China?
02What specific reason does the video give for the popularity of Platform Clogs among Chinese consumers?
03The video compares Crocs to KFC to make a point about successful brand strategy. What is that point?
04Which of the following brand strategies is NOT mentioned in the video as a key to success in the Chinese market?
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Marketing strategy sentence match

Complete the sentences about business and marketing strategies.

Match each item on the left with the correct item on the right.

Drag or click to match
Definitions
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Discuss these questions with a partner. Try to use vocabulary from the lesson.

  1. The video suggests that Crocs has succeeded by de-emphasizing its American roots. Do you think this is a necessary strategy for all foreign brands in today's global political climate, or is it only effective in specific situations? When might it be better for a brand to highlight its country of origin to gain a competitive edge?
  2. The video highlights how Crocs has tapped into the trend of self-expression among young people in China. Thinking about your own country, what current trends or cultural values could a foreign brand tap into to gain traction with a younger audience? How could a brand's message resonate with them effectively?
  3. Customization, like with Jibbitz, was key for Crocs. Can you think of another product or service that has successfully carved out a niche by offering high levels of personalization? Why do you think this strategy has become so popular in recent years, and do you believe it will continue to be a major trend?