PR Strategies for Foreign Companies in China

ABSTRACT

China is continuing its transformation into a market economy. As this transformation continues, the environment in which foreign companies operate within the Chinese market is continuing to change due to 1) Growing awareness of consumer rights, 2) The "liberalization" of the media environment, and 3) An emphasis on corporate social responsibility (CSR).

Against the background of this changing environment, this paper examines case studies in order to explore the public relations (PR) of foreign companies in China. The case studies reveal that American and European companies are characterized by : 1) PR activities are actively developed as one part of management strategy; 2) Investment not only in internal human resources but also in using external resources such as PR consulting; 3) Use of local PR professionals, thorough quantitative evaluations, and an emphasis on maximum cost/performance; 4) Active PR activities that focus on both BtoC and BtoB. On the other hand, Japanese companies are characterized by : 1) Emphasis on PR for products/technologies, with only modest and defensive corporate PR; 2) Low investment in PR, as it is not considered part of core management, and limited use of external resources such as PR consulting; 3) Fewer local PR professionals and low priority on PR evaluations; 4) Minimum PR activities for BtoB as compared to BtoC. For comparison, the PR styles of leading local Chinese companies are similar to American and European styles, though their methods are unrefined.

Some Japanese companies are beginning to proactively engage in PR activities in China, but their efforts are often sporadic and very few companies employ an institutionalized approach. Based on present data analysis, this paper suggests that Japanese companies in China should pay attention to the following points: 1) Multilayered PR strategies and methods; 2) Integrated organizational strategies; 3) Locally oriented PR activities; 4) Methods for achieving minimum investment and maximum effects; 5) The appropriate role and behavior of companies regarding their PR activities.