Modern Chinese consumers are experiencing a paradox in attempting
to express lifestyle values within the conflicting demands of
individualism and conformity.
Effective branding campaigns, therefore, play a crucial role in
resolving this identity dilemma for Chinese consumers, according to Grey
strategic planning director Colin Bates.
The agency's proprietary consumer study, ChinaBase 2000, found that 63
per cent of city dwellers said Chinese values would shape the world in
the future.
However, 90 per cent of the respondents also said China has more to
learn from the West.
The annual consumer study was undertaken in the eastern cities of
Shanghai, Nanjing and Yangzhou, where Grey interviewed 250 people aged
15 to 40, on issues such as life goals, advertising preferences,
computers and Internet access, and brand attitudes.
The study found that 43 per cent of the city consumers have a strong
sense of uncertainty; 59 per cent are worried about being left behind
and concerns about the rising costs of housing and healthcare were
raised by 71 per cent and 84 per cent respectively.
International brands using Chinese faces and Chinese brands with
international images are vital in winning consumers' hearts, according
to Mr Bates.
Perception, rather than fact management, is more important in brand
building in China, where consumers are increasingly influenced yet
somewhat sceptical about advertising.
About 76 per cent of the respondents cited advertising - preferably with
local relevance - as the third most important criteria, following
improved products and popularity, as a leading influence shaping
perceptions of their favourable brand.
Chinese consumers perceived their favourable brands as "international"
rather than "Western": 49 per cent of city dwellers preferred global
brands, 35 per cent voted for Chinese brands and only three per cent for
Western brands.
Despite growing exposure to Western culture and technology, mainland
consumers remain faithful to traditional, core Chinese values, while
occasionally practising with Western values.
Grey's study revealed that 84 per cent of respondents think of
themselves as modernised Chinese, contrasting with the 18 per cent who
see themselves "Westernised" Chinese.
"This includes a more individualistic view on life, but not yet a strong
sense of individualism," explained Mr Bates.
Chinese consumers were more realistic and confident of themselves and
their nation, said Mr Bates, noting that modern Chinese were
reinterpreting their values with the expansion of individual values
drawn on both global and local brands.
With China's entry into the WTO, mainland consumers' confidence in China
as a nation is growing.
Growth in national identity was also reflected in consumers' brand
preferences; 52 per cent of Grey's ChinaBase 2000 study respondents said
their favourite advertisements were those which featured Chinese
character, talents, location and lifestyle.