Food
UK plc is an exceptional example of what London Business School expert terms an “attractive market segment”, one which has been curated and matured over a long period of time. Chinese consumers in particular are attracted to British brands, with a high percentage of shoppers in mainland China regarding British goods as “genuine and well made”. UK entrepreneurs and established retailers should leverage the appeal of “Brand Britain”, with a particular focus on Chinese New Year and an anticipated online shopping bonanza in mid-February.
“It’s axiomatic that consumers are still eager to pay for the best, most trusted brands. However, there’s a rising number of aspirational consumers within the world’s emerging middle class who want to choose brands that have a clear purpose, set of values and meaning,” says John Mullins, Associate Professor of Management Practice at the School.
“With its history, cultural significance and reputation for quality consumer goods, the UK regularly scores very well in international ‘nation brand’ league tables. Consistently scoring well in tourism, culture, people, exports and governance the UK is a well-rounded marque which is consistently well received by consumers.”
This perception appears to be particularly strong with Chinese consumers. In a March 2017 Marketing to China editorial, it was acknowledged that in a market “renowned for a fake, cheaper products”, the label of ‘being British’ represents real quality. And in a recent UK Royal Mail survey it was found that within the online arena more than half (55%) of shoppers in China bought items from British brands in a three-month period, spending an average of £104 per month.
“There is a real appetite for ‘Brand Britain’ with its goods regarded as being well made and genuine,” says Dr Mullins. “Survey after survey appears to indicate that Chinese buyers want to be certain about their purchases and obtaining a genuine article with a trusted and well-respected provenance. The UK shines in this respect.”
In his book, The New Business Road Test, Dr Mullins asserts the view that whether one is launching a start-up or an investor sure way to mitigate the long odds is to make certain one has identified an attractive market segment. “An attractive market segment where the customers are almost certain to buy what you’ll offer. The UK is a powerful, composite nation brand which has matured over many hundreds of years. It bristles with both appeal to would-be consumers, and opportunity to entrepreneurs.”
On the online shopping bonanza near Chinese New Year, he commented, “As Jack Ma, the founder of Alibaba, once said, ‘in other countries, e-commerce is a way to shop; in China, it is a lifestyle’. McKinsey reports that 76 percent of China’s urban population will be considered middle class by 2022, but there is already a huge consumer community in China which presents numerous opportunities to promote the UK brand to an already very receptive market.”
