Chinese Consumers Bullish on Economy, Bearish on US Brands, Finds BIGresearch
Tuesday, 18 July 2006
An analysis of BIGresearch's most recent Quarterly Survey of Chinese consumers showed that while most believe the economy is heading in a positive direction, US brands are not top-of-mind for them. The study of young Chinese Consumers was conducted by BIGresearch in March, and included (1,100) Chinese consumers primarily ranging in age from 18-34 (85 percent).
When asked "Which one of the following best describes your feelings about chances for a strong economy during the next 6 months?" 85 percent of respondents were either "confident" or "very confident."
"Chinese consumers are very desirable as they're part of a growing economy," said Joe Pilotta, vice president of research for BIGresearch. "The challenge for American brands coming into China is in figuring out how their brand translates to the Chinese consumer."
US brands have work to do in this regard, Pilotta said. In the clothing vertical, 64 percent of the same group said it prefers Chinese brands, while just 27.5 percent said they preferred those from the US The vast majority – 63 percent – preferred Chinese brands in toothpaste, vs. 32 percent that chose US
Interestingly enough, in the digital mobile world, traditional print media has power in the China market. For instance, for Oral Health products, tooth paste, tooth brush etc. newspapers and magazines have more influence on purchase decision than Internet Ads or email Ads with Women 42 percent saying magazines influence their purchase decision followed closely by newspapers at 34.7 percent.
In the Pharmaceutical arena, Men are influenced more by newspapers than magazines 38.3 percent, compared to 33.1 percent, with Women equally influenced by both at 36.1 percent.
"American brands do have a presence in China, but they aren't replacing the Chinese," Pilotta said. "The best strategy for any marketer entering the Chinese economy is to be armed with trusted information as appropriate to the Chinese marketplace as possible in their approach."