In 2015, China overtook the US as the world’s largest beer economy (Colen and Swinnen, 2015) and in 2022, China produced nearly twice as much beer as the USA (Meier, 2023). While the population of China is expected to decline, the nation maintains its status as second most populous in the world (Gorvett, 2023) and has a growing middle class. This makes China a great fit for many businesses’ marketing efforts, in hopes of building brand relevance and loyalty, and Budweiser seems to agree.
Budweiser Brewing Company APAC (Budweiser APAC) has become part of Chinese culture in its own way. While attitudes in the US have turned away from classics like Budweiser (Sterling, 2017), China is a market where the same beer is considered premium, and has shown better performance (Bhasin, 2012). Additionally, the Budweiser brand is innovating in the region. In October 2023, the brand announced its first ever organic beer, staying on trend with Chinese consumer patterns which indicate that“the nation’s organic market is expected to hit $30.88 billion USD by 2028 (Research and Markets, 2023). Following the release of the Budweiser APAC financial report for the first half of 2023, CEO and co-chairman of the business Yang Ke noted that China’s share of the high-end beer is “less than half” of the same premium level in “more mature markets” (Snack Substitute, 2023) so the company definitely sees room to grow in this space.
Matt Che, CMO of Budweiser APAC, has spoken to industry publications about the importance of purpose and values in the strategy of Budweiser and its portfolio brands. In an interview with Prophet, Che shared his belief that “to be a relevant brand means being humble. Champion the consumer. Recognize, appreciate and celebrate them” (Zhang, 2022). To that end, Budweiser APAC has been leaning into Chinese consumer desires. Advertising research has shown that Chinese consumers desire “global appeals for modernity values” in marketing tactics for international brands, but at the same time prefer “local appeals that [speak] to their sense of national pride” (Chen, Wang and Liang, 2019). Budweiser APAC’s marketing strategy seems to align with these findings based on TV commercials from the past few years.
One advertisement which struck a chord with many was the 2018 Chinese New Year spot entitled “Marathon.” In the commercial, a young woman chooses to run a race far from home rather than spend the New Year with her parents. Though she feels they don’t support her – a sentiment that research found to be common among Chinese Young Adults (Hong Xiao, 2018) – the story ultimately concludes with the family celebrating the achievement together (with Budweisers, of course). Research has shown that in China and other East Asian nations there is a penchant for “emotional appeals” in advertising (Zhou and Belk, 2004) and this family-centric story around the culturally significant New Year surely fit the bill.
Budweiser’s success with “Marathon” continued to build on the appeal the brand had earned the previous Chinese New Year. 2017’s ad was “one of the most viewed and discussed pieces of content on Chinese social media, garnering over 667 million impressions, ranking No. 1 for most-watched long commercials on Weibo” (Newsroom, 2018). The positive attention would continue in following campaigns surrounding different cultural occasions.
Notably, Budweiser APAC has not shied away from LGBT+ marketing campaigns, which their US counterparts have struggled with (BBC, 2023), and they’ve been rewarded for their openness. The brand has partnered with a Chinese LGBT magazine and earned positive sentiment through on- and off-line campaigns in celebration of the Qixi Festival, known to many as Chinese Valentine’s Day. Budweiser featured artistic depictions of nearly kissing men and women on their bottles in their “All Love is Love” 2019 Qixi campaign. Utilising the popular Chinese social media app Weibo, which shows the brand’s localised approach to the market (Statista, 2023), the brand was able to repost fan-shared images of the bottles depicting couples of all gender pairings. Campaign.com reported the remarks of one customer, writing “I see the freedom to love whoever you want on the Budweiser bottles. Love should be defined by the relationship itself, not the form it takes on” (Campaign Asia, 2019). About the 2022 Qixi campaign, which again highlighted LGBT couples in addition to heterosexual couples, the Chinese branch of LGBT magazine Attitude confirmed that “Budweiser have won the hearts and minds of China’s LGBTQ community” (Hodge, 2022).
In addition, Budweiser APAC has shared how sustainability, another widely held value in China (Liu, 2023), has been part of the business’ operations. On World Environment Day 2022 the company announced that “its Jinzhou Brewery in China was on track to becoming the second carbon-neutral facility in the Asia-Pacific region by the end of 2022,” and in their May 2023 ESG Webcast it was shared that they succeeded (Budweiser APAC, 2023; Wand Zhuoqiong, 2022).
Budweiser has managed to successfully position themselves as a brand that is American in its history but, in its own way, Chinese in the present and future. Doing so through the values-based strategy the brand has developed over the last several years, it remains to be seen if Budweiser’s popularity will continue to grow among consumers in China.
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Rory Coleman 