Fast Maturing Chinese Consumers

Fast Maturing Chinese Consumers

Dag Bennett[1]

Abstract

Over the past five years, patterns of consumer brand buying and attitudes towards brands of televisions and mobile phones show that Chinese consumers are becoming sophisticated and savvy. They buy similar products and brands, face similar marketing (if not at quite the same level) and have brand loyalty and switching patterns similar to those of consumers in more developed markets, and though brand loyalty levels are low, they are rising. The Duplication of Purchase Law holds, as does double jeopardy.

The Chinese marketplace will probably remain dynamic for some time, both in terms of growth and in terms of market share shifts among competitors. Marketers of brands with broad appeal based on category drivers will likely grow the most whereas highly targeted brands, or those trying to build on a base of loyal customers are likely to decline.

Keywords: Brand Loyalty, Duplication of Purchase, Dynamics, Consumer

1. Introduction

During the past five years China’s economy grew by more than half and its markets became the worlds biggest for many things, including mobile phones and televisions. Millions of its people enjoyed increased prosperity that enabled them to consider an ever-increasing array of products, brands and commercial messages. Yet while much has been written about rising consumer spending, little research has addressed whether Chinese consumers behave like those in more developed markets, or in a particularly Chinese manner.

It might be tempting to assume that in China, with its unifying culture, consumer behavior will take on a culturally determined character. This is not to ignore China’s many distinct cultures, ethnicities, languages, regional differences, etc. but to stress the common elements, shared social values, collectivist orientation and strong group norms that may translate into consistent “Chinese” buying patterns, or a distinctive model of...