Brand Loyalty in China on Decline

Fig. 1 : Brand loyalty in China continuous its decline from previous years

What research into Chinese consumer behavior is showing now is a tendency of shoppers to choose based on promotions and less on brands. Consumers are looking not just for the quality they associate with their favorite brands but also with value for their money. The number of consumers classified as “promotion driven” jumped by 37% in 2008 – a huge increase for the country.

But what is driving this change in Chinese consumer behavior? Interestingly, the change is coming at the same time that buyers in the country are becoming more open to brands from outside their country. Because these brands were once unfamiliar and therefore risky, many consumers steered clear of them. Researchers are now seeing that as brand focus fades so does the desire to try these new products regardless of where they are coming from. Clearly, foreign companies interested in China marketing are going to benefit from this trend because they face fewer obstacles to getting their products into the hands of the customers.

 
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