Fig. 1: Triumph in China - a leading lingery brand. International reputation, consistently high quality and the appealing logo contributed to its success. Interesting to know: unlike many other foreign brands Triumph did not adopt a Chinese name and only markets through its original name.

In a Confucian society like China with a consumer value system based on principles like collectivism, family, respect and saving face, the fastest shortcut to bringing respect and glory to the group and family is through the display of famous brands. This is one of the main reasons for the success of such luxury brands as Louis Vuitton, BMW, Rolex and Armani in China.
In this chapter we will study the main aspect about Chinese consumers’ different responses when it comes to choosing a brand and how to use this knowledge to efficiently manage brands in China.

Definition

Brand Management can be defined as

“The application of marketing  techniques to a specific product, product line, or brand. It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity*.”

(source: Wikipedia)

*: Brand equity relates to "the value of a brand. From a consumer perspective, brand equity is based on consumer attitudes about positive brand attributes and favorable consequences of brand use".

(source: American Marketing Association)

Consumer preferences

Brand drivers

Brand Drivers" are short written description, keywords, and visual elements that help to articulate the core attributes of a brand. They are used to communicate the positive and negative perceptions of a brand and thus to build the brand's reputation.

Fig. 2: Key brand drivers in China.

Quality turns out to be the dominant driver to build a brand's repution. Advanced technology would be second, however in certain regions within China - e.g. in the South-west - "Good-looking design" would be the second strongest driver (32% - not shown, since above Fig. 2 only depicts national averages; for a list with key Chinese brand drivers that include regional differences go here) and "Attractive/latest features" would be ranked third with 29% (also not shown).

Buying Behavior:

Brands are more important in China than elsewhere. When shopping 66% of Chinese consumers base their purchase decision on a short list of predefined brands (see below Fig. 3). Thus being among those few brands on the consumer's short list is crucial in China.

Fig. 3: Shopping for brands or for price: Buying behavior in China in an international comparison - Brand driven vs. price driven.