Adobe pushes digital marketing strategy in China

US-based computer software company Adobe Systems Inc will continue to focus on digital marketing services as its main business strategy in China, amid a strong consolidation of mobile technology for corporate use.

The company this week staged its Adobe Executive Forum in Beijing to show potential customers how digital and mobile transformation can drive innovation and increase efficiency in the corporate world.

The California-based company says more than 100 digital leaders attended.

Paul Robson, Adobe´s president for Asia Pacific said: "As more people in China use mobile devices, businesses need to ensure they are also optimizing for mobile. For enterprises, that means the experience they give customers on their smartphone has never been more important".

Through their digital marketing services, Adobe compiles data and gains real-time insight into consumer behavior to develop more efficient business strategies.

Chinese netizens totaled 649 million by December last year, including 557 million mobile phone users. Meanwhile, the percentage of people using mobile phones also grew to 86 percent in 2014 from 81 percent a year earlier, according to the China Internet Network Information Center.

The Asia-Pacific executive explained that the forum’s goal was not only to attract new customers but also raise awareness of the need for companies to undergo a digital marketing transformation to reach customers more efficiently.

"A lot what we do as a company now, is to educate on ways to embrace digital transformation through mobile", said Robson.

In October last year, Adobe together with global executive affinity group CMO Council published a global survey that showed marketing professionals from China had the lowest digital mindset in the Asia-Pacific region despite the rapid development and high penetration of mobile devices.

The findings showed there was an opportunity in China to develop digital marketing since the technology and desire to improve the way enterprises reach consumers were already there. But there was a lack of technical know how.

Ng Yew Hwee, Adobe‘s managing director for the Chinese market said: "We have set up a team that conducts workshops in digital transformation to companies for free so we can help them improve their business".

Neil Flynn, portfolio manager at Alcuin Asset Management LLP said: "Adobe has had success with its digital market suite in the West and with the growth in app development and startups in China, there is a big opportunity for Adobe".

Adobe explains that when it first started operating in China in the late ’90s, the company only targeted its traditional global customers such as media entertainment companies and creative enterprises.

But thanks to the shift in strategy it now has a wide range of customers from online retailing, travel and leisure to banking.

Additionally, the group has seen increasing demand from SOEs, especially from the architecture, engineering and construction sectors as these industries are also looking for new ways to compete against newly created and more aggressive commercial companies.

"The reason why we are seeing increasing demand from SOEs is because these types of enterprises are undergoing an important reform and they need to implement new technology to compete on a domestic and global scale," said Ng.

Neil Shah, research director at market research firm Counterpoint Technology said: "Disappointing operational performance in China since last year has been a drag on the company’s profitability leading to focus on key business units for driving growth. The digital marketing industry growth is a $20 billion global opportunity for Adobe and is going to be the key driver for growth in the coming years".

Last year, the company announced it was shutting down its Research and Development operations in China, due to a worsening business environment.

At that time, it was suggested widespread software piracy in China could have contributed to the closure of the facility.