Breaking borders: How pacific companies can tap into the buying power of the Chinese consumer

28 April 2017

China offers many opportunities for brands and businesses located in the Pacific. Nielsen has conducted a survey on premium products across 63 countries including the Asia-Pacific region, which reveals strong sales growth of premium products around the world. The survey also shows evolving consumer demands in China which consists of a predominantly young, connected, disposable income consumer base. Compared to New Zealand (35%) and Australian (30%) consumers, seven out of ten Chinese consumers believe they are financially better off than five years ago. Seventy-two percent also say they have disposable income and have been trading up for premium products they could not previously afford. Brand value is becoming more important to Chinese consumers as premium brands show personal success or sophisticated taste and the majority of Chinese consumers also indicate that they buy premium goods which make them feel good and confident.

Chinese consumers are likely to spend more on premium brands in cosmetics, personal electronics and clothing; products which show off their personal brand. For Chinese consumers, premium products which they are willing to spend more on must have high quality standards, exceptional quality and performance, have organic or all natural ingredients, superior design or style and contain sustainable or environmentally friendly materials. There is also low tolerance for undesirable attributes or poor performance in premium products.

The survey report also offers best practice guidelines for launching premium products. Businesses who want to launch premium products need to create a highly differentiated premium product, ensure that the product fulfils its promise and performance expectations, use premium quality packaging, have the right pricing for the product category, amplify the product’s uniqueness through branding and emotional resonance to consumers, and provide sustainable and long-term marketing support allowing consumers time to adopt the new products. This is a key read for all business owners wanting to offer premium products to Chinese consumers.

Read the full article on the Neilsen website.

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