The Red Paper Series

Yulu Creative Communications

CHINA
Brand trends mixed in
Research reveals that although consumers in China are very much still strongly influenced by brands, loyalty to individual products and brands remains limiting. Research by McKinsey reveals that (sample size: 15,000) 42% of said sample agree that highequity brands equate to better quality with 32% affording a similar status to expensive goods. While these figures have actually dropped slightly, they remain substantially ahead of other markets such as Taiwan, France, and the US. The continued paradigm shift, in which hundreds of different overseas brands have now become a significant part of the Chinese consume experience. Despite the slight drop in percentages, the influence of brands on consumers buying decision in China is still poignant. But note that neither does is indicate strong signs to increasing loyalty to any single particular brand.

In further demonstration of conflicting habits, 52% of the panel were repeat buyers of both Coca-Cola and Pepsi. By contrast, just 23% solely opted for Coke, with 25% for its major rival. Equivalent trends could be observed in the toothpaste segment, where 36% of interviewees used Crest and Colgate. Exactly the same number proved loyal to Crest and 28% to Colgate. This kind of behavior was most pronounced regarding fast-food, as 63% of diners frequented McDonald's and KFC. However, only 9% always ate at McDonald's, jumping to 28% for KFC. Equally, upon choosing a chocolate treat, 43% of customers flitted between several brands, versus 20% selecting their favourite. Another 31% weighed up brands and promotions, and 6% simply picked up the best deal. Some 13% of contributors said emotional factors played a part in their decisions while buying chocolate, reaching 19% for mobile phones, totals that rose among affluent consumers. Overall, 63% of shoppers stated brands was more important than price or purchase channel when acquiring a mobile handset, standing at 54% for chocolate, 50% concerning casual wear and 44% for facial moisturizer.