Gap narrows for Chinese brands
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Chinese brands are closing the gap with international brands as consumers become more concerned about product quality rather than the origin of the brands, according to a latest study.
As high as 67 percent of consumers said they favor domestic brands, consumer research firm Mintel said in a research report yesterday.
The study covered 3,000 consumers aged between 20 and 49 in 10 cities.
The domestic food and beverage brands have a strong following, with 42 percent of the respondents favoring them over foreign products compared with 25 percent that prefer imported snacks.
For domestic ready-to-drink beverage brands, 44 percent of consumers prefer them against 27 percent that favor foreign products.
Baby food is an exception with 45 percent of respondents saying they would choose international brands against only 31 percent who favor domestic products.
“We’ve seen Chinese consumers becoming more value-driven, as they’re more likely to judge a product by its content and quality instead of checking whether it’s an international or domestic brand,” said Laural Gu, Mintel China’s senior lifestyle analyst.
The study also found that 47 percent of the consumers were more willing to indulge themselves by paying for services instead of products.
Questions & Answers
Q.What is the primary reason for Chinese brands gaining ground on international competitors?
What is the primary reason for Chinese brands gaining ground on international competitors?
Consumers are increasingly prioritising product content and quality over a brand's country of origin. This shift means the source of the product is less important than its inherent value and standards.
Q.Which specific product category still sees international brands preferred over domestic ones?
Which specific product category still sees international brands preferred over domestic ones?
Baby food is a notable exception to the trend, where 45 percent of respondents indicated they would choose international brands. Only 31 percent favoured domestic options in this category.
Q.What is the age range and geographical scope of the consumers surveyed in this study?
What is the age range and geographical scope of the consumers surveyed in this study?
The study surveyed 3,000 consumers aged between 20 and 49 years old. These respondents were located across 10 different cities in China, providing a broad urban perspective.
Q.Are Chinese consumers currently more inclined to spend their money on products or services?
Are Chinese consumers currently more inclined to spend their money on products or services?
The study found that 47 percent of consumers expressed a greater willingness to indulge themselves by paying for services. This indicates a preference for experiences over purchasing physical goods.
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