Churning out creativity at the Factory

The spoilt brats of the 1980s and 90s, raised in single-child families in large, urban cities, are perhaps one of the most coveted consumer groups of vendors selling a wide range of goods and services worldwide. But they collectively constitute something of an enigma as their desires and aspirations remain submerged in the rigid conformity of the Chinese market place.

Seeking a way to dig into the pockets of this demographic, foreign companies of consumer electronics, sportswear, soft drinks and fast foods, are increasingly looking to advertising and marketing firms to take initiative in exploring the highly diverse and non-conformist psyche of the so-called "lost generation" of consumers.

One company spearheading such efforts is UK digital advertising agency Profero, whose clients in China include US soft drink giant Pepsi and Unilever, the multinational vendor of consumer goods. It aims to cut through the stereotype to uncover what Chinese consumers in their 20s and 30s need and want.

Profero's Chinese headquarters, based in a Shanghai creative industry zone centering on a refurbished slaughterhouse originally built in 1933, is where the company teams up with American musician Sean Dinsmore. Together, the duo is working to establish a unique platform that allows young entrepreneurs the opportunity to exhibit their goods alongside art created by budding painters and sculptors.

Known as the Factory, the space revolves around a restaurant and bar where regular events, such as forums and lectures, are held for aspiring talents and their followers, including senior marketing executives from foreign and domestic companies.

"Post-80s and 90s kids here in Shanghai (are) starting to reject having things sold to them by Taiwan and Hong Kong pop stars, and they have a genuine desire for more homegrown things," said Factory's creative director Dinsmore.

With China's growing appetite for Chinese products, as seen in the strong sales of Warrior sneakers and mobile phones, the New York City native said the Factory's business model has the potential to flourish in a city like Shanghai, where international companies are open to innovative marketing approaches.

Large retail companies, which spend millions of dollars on advertising in China every year, are also beginning to realize that Chinese promoters know best what Chinese consumers want, added Dinsmore.

"It's more interesting, especially with the 2010 World Expo coming up, if the content for our clients' ads are created by young local mainland talents," he said. "(But) we're not telling our clients, we're actually showing them - with the arts we display in our studio - so they can get a clear picture for themselves about what's going on right now in Shanghai."

A creative churner, Factory also provides a space for young minds and top marketers to chat about developing ideas. It most recently held a brainstorming session for Pepsi's global marketing team, who came to Shanghai looking for inspiration on how to refresh their strategy in approaching post-80s consumers.

The first generation of Chinese since the end of the Second World War to gain economic freedom, post-80s consumers have a distinct sense of style, Dinsmore said.

"We are seeing the revival of the 'retro' trend in Shanghai among young consumers who try to recreate the 'bourgeois' lifestyle of their forebears from the 1920s 30s," he added. "That is chic."

(China Daily 08/22/2009 page14)