Monday, July 24, 2006

Crisis 2.0: China vs. the West

In the "old days," a company crisis would typically start in traditional media, and then would be amplified via copy/paste on BBS and blogs. "Black March" of 2005 with SK-II, Heinz, KFC and others offer plenty of examples. This is what I call Crisis 1.0.

Now, more and more, crisis' are actually starting on BBS or blogs. In the US, it started with Kryptonite. Then, Dell Hell, and more recently Comcast and AOL. This is what I call Crisis 2.0 (get it? kinda like Web 2.0).

ESWN has a great overview of some differences between Western Crisis 2.0 and China Crisis 2.o. Man, I wish I could of written this...he is right on the mark.

While he is describing "Internet Manhunts," the same can be used to describe brands that become the targets of net consumer rage

....these events are mobilized on the large Chinese BBS forums with tens of thousands of comments per hour. By contrast, Americans tend to visit personal blogs which are less connected, coordinated and cohesive. Thus the scale and ferocity of the Chinese manhunts are unmatched anywhere else.
Regarding examples of companies coming under attack in China, ESWN points to an attack against Netease. Previously, I wrote about VW. Also, Dell has had its problems recently. I actually don't think we have yet seen the true fury of a Chinese mob against a brand, but as I said in my post on VW, I believe it is only a matter of time.

2 Comments:

At 3:49 AM , Anonymous Feng37 said...

ESWN has written on this in the past, April 2006 for example and surely more if you look back far enough.

http://www.zonaeuropa.com/20060414_1.htm

 
At 9:26 AM , Blogger Sam Flemming said...

Thanks for this.

Yep, and the KFC case is particularly interesting because KFC responded by changing the ending of the controversial TVC and then launching an open source marketng contest allowing for netizens to submit their own endings. This is a great example of a company "listnening and learning" from its online consumers. See http://tinyurl.com/p5dzo

In addition to KFC, there are other cases going back to 2003. See Toyota Prado http://tinyurl.com/pkxx8 and http://tinyurl.com/2hg5b.

The trend I am trying to describe is that it is more and more crisis which are initiated by consumers, and I expect this trend to continue to grow.

 

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