Digital channels to drive a developing philanthropic culture in China

06 December 2018 Consultancy.asia

Digital avenues will open up a new frontier for individual donors in China’s growing philanthropy landscape says a new report from Bain & Company.

Despite a few bumps along the way, China’s philanthropy sector has grown significantly over the past decade, with RMB156 billion donated to charitable causes last year compared to the RMB31 billion in 2007. Yet, according to a new report from global management firm Bain & Company, the rise in whole terms has not kept pace with economic growth in the country over the period, representing just 0.2 percent of GDP.

This figure, which compares unfavourably to the 1.4 percent of GDP given in India and the US total of 2.1 percent, has only fractionally improved since it was previously brought to attention by Bain in a report from 2010. Meanwhile, the Chinese economy has continued to boom on all fronts, with China home to half of the world’s new billionaires last year and many of the globe’s leading e-commerce and online financial services companies.Charitable donation made in ChinaBroadly, these latter two points, together with the comparatively low overall donation tally and individual penetration rates in the country, suggest a sector ripe for substantial growth – which today is still dominated by corporate giving at roughly 60–70 percent of overall value. In the US for example, corporations account for just 5 percent of charitable donations (compared to around 20 percent in China), with individuals responsible for over 70 percent of the 2016 total donation value of ~RMB 2.6 trillion.

Further, it probably doesn’t need to be restated, China hosts a population of some 1.38 billion individuals. So that while the county is already one of the largest bases for individual donors worldwide (indeed, the fourth-largest at 91 million in 2016 behind India, Indonesia and the US), the number of donors still only amounts to 7 percent of the overall populous – indicating, again, plenty of room for growth as the local philanthropic culture develops.Sources of charitable donations in ChinaSupporting that development will be the continued rise of the digital era, contends Bain, with China home to more than three quarter of a billion internet users – a whopping 530-plus million of them engaged with online shopping and payments last year; fueled by platforms such as Tencent and Alibaba, the latter of which recently attracted sales worth US$30 billion over the just 24 hours of its annual signature Singles Day event.

While rapidly growing – jumping from a worth of RMB2 billion to 3.5 billion between 2016 and 2017 (via ~3 billion donations to 4.6 billion) – digital fund-raising still only accounts for just over 2.3 percent of China’s total donations. But, according to the Bain report, which was conducted in conjunction with non-profit coalition United Way, the online donation model comes with distinct advantages, and as such represents a significant opportunity as a driver for individual philanthropic growth.Percentage of charitable donations in China made onlineWhen quizzed, 62 percent of respondents in China stated that their preferred method of donation was online, with 64 citing more industry transparency as the biggest benefit of digital philanthropy, followed by 57 percent saying it was more easily accessible for individuals. For Chinese respondents under the age of 30, who are the most economically positive worldwide, nearly two thirds say they pay attention to philanthropy, with over half participating in charitable activities.

“This trend is poised to continue,” state the authors in respect to compound annual growth in local donations of greater than 60 percent from 2014 to 2016, “as rising disposable income boosts donor participation and donation amounts, and as rapid development of digital infrastructure (e.g., Internet/mobile penetration, digital payments) increases individuals’ access to charities… This shift presents meaningful opportunities for stakeholders with the resources and capabilities to take advantage of new digital channels.”

Caspar Schlickum appointed APAC head of Accenture Interactive Operations

08 March 2019 Consultancy.asia

Accenture Interactive Operations has appointed Caspar Schlickum as its new regional managing director for the Asia Pacific.

Accenture Interactive Operations – the marketing managed services arm of Accenture Interactive – has appointed ex-WPP executive Caspar Schlickum as its new regional managing director for the Asia Pacific. The global Accenture division has also added former Adobe head Peter Kolster Hansen as a managing director and worldwide lead for its Next-Generation Content Services offering.

With over two decades of leadership and business development experience under his belt, Schlickum crosses to Accenture after close to fifteen years at various WPP-owned entities, departing from his most recent position as APAC CEO of digital marketing agency Wunderman following its merger announcement with marcom firm and fellow WPP agency J. Walter Thompson.

Prior to Wunderman, where he served for two and a half years, Schlickum was for six years the EMEA CEO of Xaxis, WPP’s data and technology-driven media business that he co-founded. Earlier, Accenture Interactive Operation’s new APAC boss spent four years as a partner at one-time Asian start-up Mindshare, now the largest agency of WPP Media Investment Management arm GroupM.Caspar Schlickum appointed APAC head of Accenture Interactive Operations Meanwhile, Accenture Interactive Operations has also appointed Peter Kolster Hansen as a managing director to lead its Next-Generation Content Services offering, with Hansen joining from Adobe, where he served for six and a half years – most recently as the global head of creative agency partnerships for Adobe’s Creative Cloud business. Prior, Hansen spent 13 years at Autodesk.

According to the firm, he will now be responsible for its data-driven approach to dynamic content creation and customisation across multiple touch points and creative services activation – including “tighter integration with artificial intelligence (AI) and machine-learning technologies to power the effectiveness of Accenture’s programmatic, digital marketing and ecommerce offerings.”

“Caspar’s appointment gives clients a trusted partner to deliver on their growth agenda by leveraging opportunities in the region. Peter’s appointment provides clients with an expert to ensure the integrated deployment of multi-channel content creation,” said Accenture Interactive Operations global president Nikki Mendonça “With analytics, automation and applied intelligence as the new competitive advantage, we can now activate a cost-effective hub-and-spoke marketing operating model for the world’s most notable brands.”

Schlickum, who will continue to be based in Singapore, said; “Accenture has the expertise and relationships across operations, technology and experience design to help our clients achieve their business objectives. I’m excited about the opportunity to help clients in APAC rapidly deploy solutions that reinvent the legacy marketing supply chain.” Ex-Digitalis APAC CEO Annette Male meanwhile has taken over as APAC head of the newly formed Wunderman Thompson.

Related: Accenture Interactive launches programmatic digital ad-buying service in Australia.