How do Chinese consumers perceive foreign brands, and how can we position ourselves?

Chinese consumers’ perception of foreign brands has been shaped by multiple factors over the years, including China’s rapid modernization, increased global exposure, and shifts in cultural and socioeconomic dynamics. Here’s an overview:

Perceptions of Foreign Brands in China:

  1. Quality and Authenticity: Historically, many Chinese consumers perceived foreign brands, especially those from developed countries, as offering superior quality and authenticity compared to local alternatives.
  2. Status and Prestige: Brands from certain regions (e.g., luxury brands from Europe) are associated with status, prestige, and modernity, making them popular choices among the emerging middle class and affluent segments.
  3. Innovation and Expertise: Certain sectors, like technology and skincare, have foreign brands that are perceived as more innovative or specialized due to their long-established global reputation.
  4. Safety: For some product categories, especially baby products and health supplements, foreign brands have often been perceived as more reliable and safe, largely due to past domestic scandals related to product safety in China.
  5. Diversity and Novelty: Global brands can introduce new tastes, styles, or concepts not readily available in the domestic market, appealing to consumers seeking novel experiences.

However, there have been evolving nuances:

  • Rising Nationalism: In recent years, there’s been a surge in national pride and confidence in domestic brands. Campaigns like “Guochao” (国潮), which means “national trend,” have promoted domestic brands and products, making them trendy and desirable.
  • Quality of Domestic Brands: Chinese brands, especially in technology, cosmetics, and fashion, have significantly upped their game, offering quality and innovation comparable to, or even surpassing, foreign competitors.
  • Cultural Relevance: While foreign brands can introduce new concepts, domestic brands can sometimes better cater to local tastes, preferences, and cultural nuances.

Positioning Foreign Brands in China:

  1. Leverage Unique Selling Proposition (USP): Understand what truly differentiates your brand from domestic competitors and emphasize that in your messaging.
  2. Localize While Maintaining Authenticity: Tailor your brand messaging and product offerings to local tastes and cultural nuances without losing the inherent qualities that make your foreign brand unique.
  3. Engage with Local Influencers and KOLs: Collaborating with respected local figures can enhance brand trust and provide insights into local consumer behavior.
  4. Offer Exclusivity: Limited editions or China-specific product lines can make Chinese consumers feel valued and enhance the appeal of the foreign brand.
  5. Invest in Consumer Education: For products or concepts new to the Chinese market, brands can benefit from educating consumers about the product’s history, benefits, or the correct usage methods.
  6. Build Trust: Ensure product safety and quality, and be transparent in your operations and communications.
  7. Stay Updated with Market Dynamics: China’s consumer market is rapidly evolving. Regularly updated market research can provide insights into current trends and shifts in consumer sentiment.
  8. Engage in Social Responsibility: Chinese consumers are increasingly conscious about social issues and sustainability. Engage in charitable activities or eco-friendly practices to enhance your brand’s image.

PLTFRM is an international brand consulting agency that works with companies such as Red, Tiktok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries exports in China account for 97% of the total exports in Asia. Contact us and we will help you find the best China e-commerce platform for you. Search pltfrm for a free consultation!

info@pltfrm.cn
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