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Consumer and Retail

Chinese banks embark on marketing campaigns
By AMY CHEUNG
Published: October 12, 2006 12:00 AM
On the cusp of a wave of increased competition from foreign entrants, the nation's banks include the Bank of China and the Industrial and Commercial Bank of China are ramping up advertising spending to secure their established customer base, The Wall Street Journal reported. China's banks are rushing to promote themselves as the long-awaited opening of the banking market in December draws closer, when World Trade Organization rules dictate that foreign banks should start getting access to the market. Chinese banks worry they could lose customers to the new foreign entrants, said the paper. In most cases, their ads are different from the fuzzy, brand-building ads that Western banks often prefer. Chinese banks are spending money on detailed advertisements in the mainstream media, in part because of a lack of direct-mail advertising. To digest data and product specifications in a typical ad, it can even help to have a calculator handy. Instead of brand-building by the banks, "we've seen more in China around products and specifics," says Oliver Stratton, head of the banking practice in Hong Kong at Bain & Co., a consulting firm. Bain estimates Chinese financial institutions are spending as much as 450 million US dollars annually on advertising -- much of it to promote credit cards, which bankers consider a way to get a foot in the door with customers. Television is estimated to account for 70 percent of the spending.  
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