Brand Value in China
In China and all other parts of the world, the success of your business heavily depends on the strength of your brand. It is important to communicate your mission and core value more proactively to your target clientele. This is all the more true in China, where competition is cut-throat and the market highly fragmented. Boosting brand value is more than improving your brand’s look, messaging and relationships with consumers. It is keeping pace with China’s constantly changing consumer landscape and pivotal market trends.
Boosting Brand Value in China
Personalization and Customization
As the Chinese market turns increasingly crowded and competitive, it becomes vital for brands to distinguish themselves from the pack. Chinese consumers are looking for unique shopping experiences, wanting to have a personalized connection not just with the merchandise, but with the brand. The younger consumers in China show a strong preference in brands that respect their individuality and respond to their particular needs.
For instance, 41% of Chinese millennial consumers are willing to pay more for a customized product. When the French luxury company Longchamp launched its customized handbag, it became extremely popular among Chinese consumers. Even local brands in China, from fashion and cosmetics to accessories and even furniture, are embracing customization as a way to win new customers and generate higher sales.
Authenticity and Transparency
Enhanced transparency builds trust and creates value. It helps consumers make an objective evaluation and choose one product over another. Chinese consumers are increasingly looking for greater transparency from brands. They want to know exactly what they are paying for with their hard-earned money.
In order to build trust, companies should be open about providing the information customers want about their products. Tech-enabled transparency is an effective way to build consumer trust and brand loyalty in China. It is one way for companies to highlight the premium quality of their products in a more objective and quantifiable way.
Nongfu Spring, a local brand, has effectively used technology to build trust and boost sales. In 2016, it launched 17.5° Orange with a QR code that allows consumers to find out where the brand’s orange comes from, how it was grown and other details regarding its quality. The product sells at double the price of similar brands of oranges in marketplaces. Nongfu Spring’s campaign sends a powerful message in the context of China, where skepticism is prevalent when it comes to the quality and safety of consumables.
In China, consumers are attracted by brands that incorporate distinctive lifestyle elements and offer novelty and excitement. They are willing to pay for high-quality essentials that integrate into their everyday lives. The younger generation, particularly, make purchases on products that fit their lifestyle and less about price and quality.
For example, Uniqlo is a fashion brand that Chinese consumers are finding to be a great lifestyle fit. Their simplistic styles and comfortable materials have allowed them to integrate into the fast-paced, health-conscious urban Chinese lifestyle, while their UT collection (Uniqlo Graphic T-Shirt Collection) featuring pop-culture references like Star Wars strikes a chord with the expressive and individualistic Chinese youth.
To increase their brand value in China, companies must recognize the consumers’ need for transparency and authenticity. Consider product offerings that integrate well with the Chinese lifestyle. Finally, learn to establish personalized connections with your costumers. Through these, you can stand out and drive the brand buzz that will keep targeted consumers excited, engaged and coming back for more.