KSA’s report reveals Chinese consumer mindset

28/10/2004

A consumer survey recently carried out by Kurt Salmon Associates (KSA) has revealed that China has a growing group of sophisticated consumers who value quality of product and shopping experience and remain loyal to tested, reliable brands. Over 600 male and female respondents from Beijing, Shanghai, Chengdu and Shenyang across all age groups took part in the survey, representing a middle class section of China’s population.

 

The results show that the crucial factors in choosing a brand are: trust and quality (92%), a positive impact on health (91%), the brand’s care for customers (76%) with price taking only a fifth place in the rank (73%).When deciding upon a shopping experience middle-class customers look for quality (52%), service (39%) and variety (36%) with price in fifth place once again.

 

The survey has also revealed a high level of brand awareness and loyalty among shoppers. Buying local and foreign brands is usually determined by the product purchased and, whilst foreign electronic equipment and home improvement products are largely preferred to local ones, when food is concerned local habits come first. Mainstream consumers showed no preference of origin with footwear and apparel, whilst younger and wealthier ones picked foreign branded apparel and footwear products over local brands.

 

Consumer dissatisfaction also runs high in China (48% women and 36% men), surpassing even the Americans (30% women and 36% men) with shoppers finding what they want only in 5.4 out of 10 store visits. Despite a fragmented retail sector Chinese shoppers are quickly turning to supermarkets (a 40% increase on the previous year) and look for apparel and footwear in department stores.

KSA is an international retail and consumer products consulting group that provides solutions in the areas of leading consumer products suppliers, retailers and health care organisations.