Shanghai, China, March 04, 2010 --(PR.com
)-- More than 60% of Emerging Consumers Prefer International Brands that Localize their Products to the China Market
Enovate, a China focused consumer insights and strategy firm, released its 2010 China Emerging Consumer Trends report today, a report that covers over 30 critical trends.
80% of wealthy consumers in China are under the age of 45, compared with 30% in the US and 19% in Japan. The sheer size and spending power of this consumer group in China, combined with the relatively mild impact of the global recession on the country, is causing foreign brands to salivate over the potential upsides of this market.
Enovate’s report reveals specific China youth trend insights that were gained through enovate’s close interactions (direct market research, social media participation, trend analyses) with China’s emerging consumer (15-30 years old) segment.
As many brands and businesses already know, this consumer group is different from any other in the world. In order to win over this groups’ hearts and command attention, brands need a deep understanding of this groups’ hopes, habits, dreams and desires
Enovate’s 2010 report will highlight key trends affecting this emerging consumer in areas related to technology, society, regional differences, media, marketing and branding preferences and habits and provide guidance for any brand or business targeting this growing market.
Three key trends highlighted in the report include:
Youth Still Crave International Brands but Want It Their Way -- Will This Be Exported Back Out of China?
The emerging consumer is still hungry for foreign brands, but this consumer is becoming deferential to global brands that develop products to local tastes and preferences. In a recent enovate survey, a majority of respondents (over 60%) indicated that they preferred foreign brands with localized designs over local brands or foreign brands with no localization. This is driving an interesting phenomenon--brand innovation within the China market. Brands like Pizza Hut, New Balance, and Buick are all taking measures to differentiate their brands in the China market. New Balance, as a late entrant into the game, needed to make a quick impact with its target consumer and so invested in product and retail innovations specifically for the China market. These developments are now being rolled out globally by New Balance headquarters back in Boston. Could the strength of the emerging Chinese market in China affect global trends?
Online and Offline Interactions Amongst Chinese Youth Expanding While Also Fragmenting.
For 2010's Chinese youth, there is a proliferation of technology that continues to bridge the gap between online and offline social networks. Social networks such as Douban establish online pages that promote offline social gatherings. These are categorized by cities and are a popular way for young Chinese to make new friends and expand their social network. Offline groups are also gathering in China to participate in group shopping, or in Chinese “Tuan Gou”. It is also important to keep an eye on up and coming players such as P1.cn and moko.cc.
Multi-versatile and Integrated Companies, Technology and Media.
Online Chinese youth consumers are extremely turned off to advertising that is "e-su", instead preferring advertisements that are fully integrated engaging, creative, and displayed across both traditional and online channels. Technologies such as cell-phones and PSP's are becoming increasingly versatile and multi-functional for youth users as well, due to an "always online and in touch" virtual generation. Chinese youth must be able to communicate, play games, read books, shop, etc. all from the convenience of their cell phones or PSP's. The key to success in 2010 and onwards will be how well brands use an integrated approach to their campaigns and brand touch points.
Enovate Director John Solomon commented, “We are actively following brand innovation in China. We believe the outcomes of brand differentiation in China will lead to China exporting innovation. I predict in the near future a China trend could become your markets’ next trend.”
Solomon continued, “On the online front, we predict that we will see a proliferation of niche social networks in 2010, with networks and Chinese youth cultures becoming more fragmented and specialized. Websites like P1 and 360Quan cater to sects of niche cultures, yet are highly influential online communities to target.”
Enovate collaborated with trend agencies around the world as a founding member of the recently launched global Youth Research Partners to undertake this report. This report, while China focused, is also applicable to emerging consumers worldwide.
To receive a copy of enovate’s China Youth Trends 2010 report and a full briefing, please email John Solomon at jsolomon[at]enovatechina[dot]com. The report is available in both English and Chinese.
Enovate (www[dot]enovatechina[dot]com) is an insights and design firm located in Shanghai, China. The company combines consumer insights with an experienced strategy team to develop innovative solutions for China’s emerging consumer market. The company works with multinational and Asia based brands, agencies, and investors looking to expand in the growing China market and also publishes a blog and weekly bulletin featuring emerging consumer trends.
Enovate is a sister company to youth lifestyle apparel brand, eno (www[dot]eno[dot]cn), and together were recently named one of China’s Top Ten Most Innovative Companies by Fast Company Magazine in 2010.