Power dynamics in the advertising industry are shifting: while international 4A agencies lose their grip, a new wave of local agencies is emerging.
In 1992, Shenzhen's Guanghua Road was buzzing with excitement. A golden “M” stood tall atop a three-story building—China's first McDonald's. A thousand-meter-long queue stretched outside, as eager customers waved 100-yuan bills. The store's 20 cash registers worked non-stop. By the end of its first weekend, the restaurant had shattered records, pulling in a staggering 460,000 yuan in a single day—the highest daily sales for any McDonald's in the world at the time. Meanwhile, the creative team at Leo Burnett brilliantly wove the individualistic slogan “I'm lovin' it” into the local narrative of “The Birth of the Spicy Chicken Burger”.
Fast-forward forty years, and “Made in China” has evolved beyond manufacturing prowess into a global branding force. Miniso's flagship store in New York's Times Square has become a beacon of China's brand expansion overseas. By leveraging a fusion of iconic intellectual properties and unbeatable affordability, Miniso captivated global shoppers, with first-month sales surging to eight times the average of its other stores.
These two marketing revolutions, separated by four decades, underscore a fundamental shift in global branding. The old order of globalization has been dismantled, and as the world undergoes profound transformations, a new wave—led by China—is reshaping the landscape. With its rising influence, China is not only integrating markets but also redefining cultural narratives.
EqualOcean delves into the advertising companies behind globalized brands, exploring:
Which agencies are orchestrating these groundbreaking marketing strategies?
Over the past 40 years, how have global advertising firms established deep roots in China?
As Chinese brands go global, how are nimble local agencies outmaneuvering legacy players?
Foreign Advertising Firms in China: The Rise of 4A Agencies
China's 1978 reform and opening-up policy paved the way for private businesses and foreign enterprises, encouraging international investments and allowing foreign companies to establish joint ventures in China.
On March 15, 1979, the first foreign advertisement of the reform era appeared in Wenhui Daily — a Swiss Rado watch ad. Interestingly, the ad featured a hand-drawn illustration rather than a photograph. Many readers were eager to buy the watch, only to realize it wouldn't officially enter the Chinese market for another four years.
By 1992, as China further opened its markets, multinational ad agencies quickly recognized the opportunity and moved in. The industry experienced a rapid boom, with the world's six largest advertising conglomerates establishing their presence in China.
Japanese-Style Globalization: How Dentsu Pioneered Advertising in China
When Japanese advertising companies entered China, the trailblazer was Dentsu.
With limited land and scarce resources, Japan developed a formidable manufacturing industry in the last century, producing vast quantities of goods that urgently needed to be exported and capture global markets. At the time, Japanese products and capital were eager to enter China, both as a source of raw materials and a consumer market. The normalization of Sino-Japanese diplomatic relations signaled an opportunity, stirring interest among Japanese advertising firms.
In March 1979, Dentsu took the lead in collaborating with Shanghai Advertising Company. By 1986, it established Dentsu Young & Rubicam as a joint venture, becoming the first 4A joint-venture advertising agency in mainland China.
From that point on, numerous Japanese brands made their mark in the Chinese market, with Dentsu playing a pivotal role.
"Where there is a road, there is a Toyota." This Toyota billboard stood along the road to Beijing Capital International Airport. The iconic slogan, blending the essence of Chinese traditional culture with the prowess of Japan's modern automotive industry, became a classic in advertising history.
Panasonic placed window display ads in Wangfujing, showcasing a corner of a modern home filled with electronic appliances. This display became a symbol of modern living, introducing Chinese consumers to the concept of an advanced lifestyle. At the time, media reports described the scene:"Young men and women lingered, marveling at the variety of products on display... We dream of a better life—how can we bring it closer to reality?"
Beyond Toyota and Panasonic, other well-known Japanese brands such as Toshiba, Canon, Hitachi, and Kao also became Dentsu's clients. At a time when China's industrial sector was still in its early stages, Japanese advertising agencies helped Japanese brands quickly gain market share. To Chinese consumers, Japanese products became synonymous with high-end quality. During this period, Japanese corporate advertisers were the dominant force among foreign advertisers in China.
Western-Style Globalization: How Ogilvy Paved the Way in China
As one of the world's largest advertising agencies, Ogilvy continues to hold a pivotal position in China's advertising industry.
Western DNA endows advertising agencies like Ogilvy with an innate advantage in cultivating a global presence. By riding the wave of multinational corporations from developed Western nations, they have established a formidable presence across the world. By the 1970s and 1980s, Ogilvy had already expanded into Hong Kong and Taiwan, gaining early insights into Chinese-speaking markets and laying a solid foundation for its subsequent entry into mainland China.
Ogilvy's expansion into China was driven by the migration of its key clients.
When Unilever decided to relocate its Asian headquarters to Shanghai, Ogilvy followed suit, setting up its first mainland representative office in the city. To better serve its clients, the agency formed a joint venture with Shanghai Advertising Group, steadily expanding its operations and diversifying its service portfolio.
Unilever became Ogilvy's first client in China, followed by Volkswagen Santana.
"With a Santana, you can travel the world without worry." This 60-second television commercial propelled the Santana model to iconic status, making it a best-selling car in mainland China for over two decades.
Ogilvy then partnered with KFC, setting the benchmark for fast-food advertising in mainland China. Since 1991, from print ads to television commercials, it pioneered the marketing playbook for quick-service restaurants, solidifying KFC's position as the undisputed leader among Western fast-food brands in China. This success ultimately made China KFC's largest global market.
Relying on international advanced experience and long-term Western clients, behind many multinational giants entering China there were Ogilvy's operations, such as IBM, Motorola, Kodak before the millennium, making Ogilvy the "Huangpu Military Academy" in Chinese advertisers' minds.
The cyclical interplay between multinational corporate expansion and the support of advertising agencies became an early blueprint for globalization.
First, by following key international clients into China, agencies secured a first-mover advantage. For instance, Guangzhou Dentsu's client, Colgate, entered the Guangzhou market in 1992, the same year Guangzhou Dentsu was established.
Second, agencies formed joint ventures with local partners that had a competitive edge, expanding new business opportunities and achieving mutual success in the Chinese market. In the initial stages, they typically set up operations in China's three major advertising hubs—Shanghai, Beijing, and Guangzhou—before gradually expanding into other cities.
These international advertising agencies had long served domestic brands, giving them a deep understanding of product strengths and brand positioning, allowing for more precise execution. The trust built through years of collaboration helped ease their clients' concerns about entering an unfamiliar market.
At the same time, foreign advertising firms identified gaps in the Chinese market and fully leveraged their first-mover advantage. With advanced marketing strategies and techniques, they shaped the perceptions of Chinese consumers. Their overwhelming success and soaring performance further attracted local Chinese enterprises, accelerating their localization and market integration.
Chinese Brands Going Global: Telling China's Story to the World
The tides have shifted, and the wave of Chinese enterprises going global is unstoppable.
While drawing lessons from past multinational expansions, Chinese brands are also carving out unique paths of their own.
Unlike 40 years ago, the rapid development of the internet has diversified marketing channels, while the explosion of information has reduced consumer sensitivity. This presents greater challenges for both brands and advertising agencies.
Boutique advertising firms have become the preferred choice for many brands. Their advantage goes beyond competitive pricing—personalized service and holistic campaign strategies are their true strengths.
Take Midea U, an air conditioner designed specifically for the North American market. Midea entrusted its campaign to F5, a Chinese creative agency.
In New York City, many apartment buildings feature vertically sliding windows, which are incompatible with traditional air conditioners. The Midea U air conditioner features a deep U-shaped groove in its body, allowing the window to slide smoothly along it, opening and closing freely. To highlight this vertical opening and closing feature, F5 conceptualized the window as a singing shape, creating the "Singing Windows" advertisement. In an interview with F5 regarding the project, the agency explained the creativity and design behind the commercial.
The team focused on the target market, incorporating typical cultural elements of the United States to create scenes that resonate with consumers. For example, they used dance and music elements from American culture, as well as the fantasy genre commonly seen in Hollywood films, instantly bridging the cultural gap and immersing the audience in a familiar cultural narrative. At the same time, the portrayal of typical American street scenes and a diverse range of faces in the crowd helped create a more authentic environment.
F5's founder, Fan Yaowei, emphasized the importance of leveraging overseas talent to navigate cultural nuances while collaborating with local production partners to ensure authenticity. Though this approach may reduce margins, it maximizes cultural relevance and audience impact. Additionally, the flexibility of the Chinese approach can be fully leveraged. For instance, if a project's supplier quotation exceeds the budget, the project can be broken down into smaller tasks to see if multiple companies can complete them at a lower cost.
How Jetour Is Winning Over Global Consumers as a Leading Chinese Off-Road Vehicle Brand
Jetour's latest international video advertisement was crafted by Read Agency, a top-tier domestic creative agency. EqualOcean sat down with its founder, Liu Chang (Rednote @noise, ID: 945102391), to uncover the strategy behind the campaign.
Chinese brands expanding overseas are still in a phase of rapid and aggressive growth. Demand is surging, and international marketing budgets are abundant, creating an ideal moment for Liu's company to shift its focus toward global markets.
In the race to claim market share, companies prioritize launching their products first, with branding and positioning evolving over time. No matter the marketing approach, the core strategy remains the same: highlighting product strengths and unique features always comes first.
This principle is evident in Jetour's global English-language advertisement, where the word “WONDER” carries a dual meaning. Last year's theme centered on historical landmarks, while this year's emphasizes exploration, subtly signaling a brand evolution. The visuals not only showcase the vehicle's off-road capabilities but also weave in an adventurous storyline that resonates with the spirit of exploration among off-road enthusiasts.
When asked about regional adaptations for different markets, Liu explained, “Jetour primarily relies on distributors rather than establishing its own branches overseas. That's why we use a standardized ad as the foundation, modifying only the voiceover and subtitles for different languages. This approach ensures universal comprehension while keeping costs manageable.”
Liu Chang has a unique understanding of market segmentation, not in terms of broad continents or regions, but rather "cultural zones." "For example, India and Nepal are both in Asia, but we would place them in the same cultural circle." By deeply understanding these cultural circles, one can apply insights across similar cultures, making it easier to navigate countries within the same cultural zone.
As for incorporating Chinese cultural elements into advertising, Liu believes they should neither be deliberately avoided nor forcibly inserted. “Sometimes, we want to promote Chinese culture abroad, but it can easily backfire. CHAGEE（霸王茶姬） is an example. The intention was good, but the team didn't execute it well, and as a result, they ended up offending domestic consumers.”
The sensation caused by Black Myth: Wukong domestically may not translate to equivalent influence in overseas markets. While we do not deny its monumental contribution to cultural exports, this long journey has only just begun. Foreign stereotypes about Chinese culture will persist for the foreseeable future. "Many fail to realize that our understanding of Chinese culture differs vastly from its 'Westernized' interpretation. Paradoxically, stereotypical elements like Bruce Lee, pandas, and calligraphy remain far more accessible." The selection and presentation of Chinese cultural elements ultimately depend entirely on brands' own interpretations.
The choice of marketing partnerships is closely tied to a company's stage in global expansion.
Currently, most Chinese firms going overseas prefer working with domestic advertising agencies. “Since cross-border e-commerce drives much of today's international expansion, most teams remain in China, making it more convenient to collaborate with homegrown agencies.” However, for companies establishing a physical presence abroad, partnering with Chinese-run studios in local markets offers a more cost-effective solution. Only well-established enterprises with ample resources tend to opt for major international advertising firms.
From global 4A agencies empowering multinationals' China localization to domestic agencies serving as "light cavalry" for Chinese brands' global expansion, the evolution of marketing strategies has always resonated with globalization's pulse. The gears of globalization never cease turning, as the rise of Chinese brands and the world's receptive embrace intertwine into a mutually reinforcing revolutionary tide. From deep-rooted cultivation to transformative breakthroughs, from local narratives to global dialogues, this cross-generational journey not only reflects the evolution of commercial logic but also marks a pivotal transition where Chinese brands progress from "manufacturing exports" to "value-driven narratives."
