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Telling Chinese firms' stories well

By Wang Zhuoqiong | China Daily | Updated: 2018-03-05 09:42
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Rachel Catanach, president of FleishmanHillard China, delivers a speech at a public relations event in Beijing in November last year. [Photo provided to China Daily]

Rachel Catanach-led FleishmanHillard seeks to communicate corporate achievements to the world

Companies don't value their reputation until there is a crisis, said Rachel Catanach, president and senior partner of FleishmanHillard in charge of the China market.

The global communications agency specializes in a variety of areas, including crisis communication, media relations, public affairs, brand marketing, reputation management, and research and analytics.

"A crisis brings home what is important to you. Companies are like individuals in that it's not until you face a difficulty that you value what you have or what you have just lost," said Catanach, who is a certified crisis counselor.

FleishmanHillard has worked with a number of Chinese companies. Among its clients are e-commerce companies, technology giants and sports marketing firms.

"What we can bring to local companies is an understanding of international best practices and how to tailor their communications so that they truly meet the particular reputation needs of each company," said Catanach.

More of its Chinese clients now want to expand abroad or internationalize their operations, she said. For perspective: Chinese mainland's enterprises wrapped up 572 overseas mergers and acquisitions or M&As in the first three quarters of 2017, worth a combined value of $97.7 billion, according to a November 2017 report from management consultant PwC.

Some 30 percent of FleishmanHillard's clients in China are local companies. "Five years ago, it was less, maybe 15 percent," she said. Five years from now, the figure is expected to be 50 percent.

China has an opportunity to lead the world not only in e-commerce and technology spaces but in communications, she said.

"China's communication's landscape, with its proliferation of different channels and all-encompassing WeChat ecosystem is spawning new ways of communicating that can be exported to the rest of the world," said Catanach.

She said the firm can help communicate the new opportunities provided by big data and artificial intelligence. They will not only transform how they work but also have the potential to transform communications, not only in China but in the rest of the world.

FleishmanHillard will help Chinese companies going abroad to prepare for the new environment, she said.

"Chinese companies need to tell their story in a way that is suitable for the local culture and the understanding that local people in that market have of Chinese companies."

Though a lot of Chinese companies are very well known in China, when they go to a new market, people have no knowledge of them, she said.

Chinese companies need to understand these misperceptions in order to address them and tell their story effectively.

For example, many people in the West are not aware of how innovative Chinese companies are. They still have a perception that they are very good copycats, said Catanach. It is important for Chinese companies to provide tangible examples that help illustrate their innovation, the value they can bring, and how their innovation can be applied to new environments, she said.

Sometimes there is not enough done in advance to build understanding of the company going to a new market. "Companies can't expect acceptance overnight. It takes time to build understanding with the right stakeholders and also to communicate a reputation story that really resonates with local communities," she said.

Stakeholders also need to experience the company and see for themselves how that company behaves. This approach does not just apply to Chinese companies.

Many Western companies also have negative reputations when they go to a new market-or the experience of stakeholders and consumers does not live up to that reputation when they begin operating in that market, she said.

"Reputation doesn't happen overnight. This isn't just the advice I'd give to Chinese companies but everyone. By showing your true brand character through your actions, you can change any perceptions over time," she said.

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