The Advantage Westernin Chinese Branding

Chinese consumers see western brands as products of quality

M o s t C h i n e s e p e o p l e co n t i n u e to a s s o c i a te W e s t e r n b ra n d s w i t h quality, and this confers immediate advantages in t e r m s o f b r a n d perceptions, regardless of how accurate they are.

The media message is that only western Luxury brands make PINK

money in China

Organic FoodEducation

Medical TechnologyWine

Home FurnishingTourism

In reality, the world’s biggest market is hungry for all manner of western goods and services. Here are some of the most popular:

Organic Food

“Organic regulation of Chinese foods is a joke.”

- Dr. Axe, 07/13

The Chinese Organic Food Certification Center (COFCC) is supposedly in charge but only certifies about

30% of organic products. The rest are certified through third parties, private firms, individual

inspectors and international firms.

They report that food safety issues in China make organics a profitable market. Consumers are willing

to pay 300% more for organic asparagus, 10 times more for organic beef, and generally,

5-10 times more for all organic vegetables.

This explains why the Chinese organic market was worth 13.5 billion dollars in 2012, and is growing at

40% per year.

Northwest brand cherries from Washington, Oregon, Idaho, Montana and

Utah sold 155 tons on Tmall before they were picked. !Chinese consumers want the largest, sweetest cherries and they are willing to pay for them.

!“They (cost) three times more per pound in China than they do in the U.S.”

China represents an endless source of students for private high school for college and university admission departments. According to the Chinese Ministry of Education, the number of students from China studying abroad

was 450,000 in 2013, representing 15% growth over 2012, easily the

largest international student population in the world. !A combination of increasing wealth, as the nation rapidly transitions to a knowledge-based economy, and the prestige of an overseas education, has

convinced a reported 90% of affluent Chinese parents that sending their

kids to an English-speaking country is worth the investment.

Education

Home Furnishing

“China's furniture consumers prefer international brands

due to their excellent design and superior quality.”!

- Sina News, 02/09/13

"China's furniture market is growing at over 25% average."

- HKTDC Research

"Ikea's China stores saw 43 million visits - driving up sales

by 17 percent." - CCTV, 11/08/13

Medical Technology

China’s health industry is taking off with the economy, a nation-wide dearth of quality clinics and health centers being addressed with a boom in everything from plastic surgery to veterinary care. Of course, only the best will do.   Smart global players like Thermo-Fisher and

Hitachi spend copiously for advertising on

massive focused portals instrument.com.cn, shown below, to drive significant revenue growth for product lines such as confocal

microscopes and diagnostic testing kits.

Wine

After a long age of Socialist austerity, the Chinese are turning to the finer things in life with a vengeance. Wine is an upscale purchase that the growing middle class can afford.   27 percent of wine sales in China last year were made over the Internet. By contrast, online sales accounted for only 8 to 10 percent of wines purchased in Europe and just 2 percent in the United States.   China is the largest red wine market in the world.   Tmall stores specializing in foreign wines are proliferating.

Tourism

China will be the world’s largest outbound tourist market by the end of 2015. The age of packaged tours is over, as savvy Chinese consumers seek specialized, self-directed experiences in virtually every niche.  

Tripadvisor has a viral Chinese version, Daodao.com

Focused social portals such as Mafengwo are a great way to promote travel offerings for free, as well as advertise.

!• Western organic, specialty food, home furnishing, travel, medical

technology, and education organizations have a natural advantage with Chinese consumers.

!• Whatever your industry, you can build a profitable niche by competing on

quality & authenticity. !

• The rapidly evolving Chinese Internet is making promotion of your organization more scalable and cost-effective than ever thought possible.

Takeaways:

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