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Chinese Consumers Get More Emotional
GroupM study shows how consumers are becoming more
emotional in making brand choices
December 16, 2013, Shanghai – GroupM China’s most comprehensive market
research on consumer behaviour in Tier 1 to 4 cities, Shan Hai Jin, revealed that
emotional drivers are an increasingly important influence on Chinese consumers’
purchase decisions. Among the 22 product categories studied, including automobile,
beverage, cosmetics, skincare, luxury, banking and electronics, emotional factors
came first as a reason to buy for more than half of the categories.
“This research has forced us to re-evaluate our assumptions regarding consumer
behaviour in different market tiers,” said Mark Patterson, CEO, GroupM Asia Pacific
and Chairman, China. “Consumers’ attitudes and preferences don’t evolve in a
perfectly linear fashion, and Tier 4 consumers are showing surprising similarities in
some categories to their counterparts in Tier 1 markets.”
Chinese consumers are becoming more sophisticated, and understanding their
consumption behaviour has to go beyond the standard tiers, geography,
demographics and social groups. Especially important for brands in Tier 1 and 2
cities where market share is stagnating, emotions are often important drivers in
building brand loyalty.
“Most brands in China have focused on getting distribution, but as e-commerce,
malls and big retailers are getting more and more established throughout China, the
battle will be about which brands the consumers perceive to hold the most value. In
this context, it is essential for brands to understand the importance of building the
emotional connection with their consumers,” commented Mark Patterson.
Shan Hai Jin 2013 research covered an extended scope of four Tier 1 cities, 28
provincial capital cities, 60 prefecture-level cities, and 184 county and county-level
cities with 19,400 samples, an extension from only Tier 3 and 4 coverage in
previous years since the study pioneered in 2007. The largest and most extensive
project of its kind in China, the research covers various aspects including brand
preferences, consumption behaviour, media habits and values of Chinese
consumers in Tier 1 to Tier 4 cities.
In this research, Tier 1 cities cover urban centers like Shanghai, Beijing and
Guangzhou; Tier 2 cities are provincial capital cities like Hangzhou, Nanjing and
Hefei and some of them are also emerging economic centers like Chengdu,
Hangzhou and Nanjing. Tier 3 cities are prefecture-level cities including Foshan in
Guangdong, Wuhu in Anhui and Shiyan in Hubei, and Tier 4 is represented by
incredibly fast growing county-level cities like Yuzhong in Gansu, Tianmen in Hubei
and Helan in Ningxia. For most advertisers, “lower tier” markets represent the future
of their business in China. While per capita GDP remains lower than places like
Shanghai and Beijing, the economic growth in these markets continues to far
outpace more developed east coast cities.
“The key findings on emotions as a purchase influence vary across product
categories, product usage, demographics, geography and tiers. Marketers must
develop a much more nuanced understanding of consumer attitudes and
behaviours by market clusters and adapt their strategies accordingly to truly engage
consumers effectively,” commented Mark Patterson.
The following are some topline findings from the research:
Emotions impact consumers differently with market maturity.
Respondents aged 15-64 in Tier 1 and Tier 4 cities are most emotionally bonded
with skincare brands, with feel-good factors such as “Make me feel more confident”
and “Make me feel more attractive”, as well as their identification with brand status
among the top reasons to buy for Tier 1 cities. Both Tier 1 and Tier 4 cities
responded strongly to the emotions present with the brand they grew up with; this
being an extremely important factor for market share in Tier 4 cities.
Emotions in Tier 2 and Tier 3 cities on the other hand, play a less personal role in
brand loyalty, where consumers are more concerned with brand reputation and
safety. “International brand”, “Mass brand”, “Professional brand” and “Safe brand”
are what they look for. Consumers in Tier 2 cities are also generally more open to
trying out new skincare brands that meet their needs.
The results have shown that trust and a sense of familiarity are important reasons
for brand loyalty, and especially so for Tier 1 and Tier 4 cities where emotions are
higher. Emotions in itself, is also a complicated subject. Although Tier 1 and tier 4
respondents scored high on emotional attributes, their motivations to buy are
different. Tier 1 consumers are exposed to more brands and more choices in a
mature market while Tier 4 cities are markets where local brands have a stronger
presence.
Skincare Category Drivers
Insights:
1. The influence of emotional attributes is intangible, and may impact differently
across different markets where market forces are different.
2. Marketers can expand their market strategies into Tier 2 and 3 markets where
consumers are more open to new brands, especially international brands where
they can showcase the efficacy and safety aspects of their products.
Emotional drivers impact consumers differently across the different tiers, and
across geographical markets for luxury products.
Respondents in the upper tiers are generally more emotional than their counterparts
in the purchase of luxury products. Consumers in Tier 1 and 2 are most influenced
by their emotional bonding with brands, with consumers in Tier 2 cities also buying
brands that cater to their sense of self, status and wealth. Consumers in Tier 3
however, are heavily skewed towards brands that can match their sense of identity,
social and economic status in their luxury purchase. Tier 4 consumers while
concerned with the physical benefits of the purchase, also responded well
emotionally towards lesser- known luxury brands.
Brand Emotion and Behaviour Loyalty
Differences across tiers may however, differ with varying degrees across
geographical markets.
China as a complex market comprises many different groups that are unique in their
own ways and geographical differences are often an important consideration for
marketers. Results showed that emotional influences also vary across geographical
markets, with respondents in the South, North and East China being relatively more
sensitive to emotional influences in brand loyalty, while respondents from the
Southwest and central region responded better to practical and functional drivers.
Luxury Category Emotional Map
Source: Population and GDP data from China Statistical Yearbook 2012
With higher income, longer brand exposure and a wider range of product choices,
results showed that respondents in the upper tier cities are generally more
emotionally motivated and brand loyal. However, while marketers recognise the
importance of soft attributes, it is also important to understand that these are often
built upon great products.
Insights:
1. Brands should take into consideration that consumers purchase their brand for
different reasons across geographies and adjust their approach accordingly.
2. There is not always a natural Tier 1 to 4 ladder of reasons to purchase brands –
it depends on the category, consumers’ familiarity with the category, and if it is a
category upgrade.
Women are more emotionally motivated than men in car purchases.
Among the top 10 reasons to buy for cars, six out of the top 10 influencers are
emotional for women, with “Good sales services”, “Attractive advertising”,
“Environmentally friendly”, “Less negative news”, “Attractive appearance” and
“Identity/ social status” among their top considerations. Men, on the other hand, pay
more attention to “Good test drive experience”, Low maintenance” and “Attractive
interior design”, with “Attractive advertising” being the only emotional driver in the
top 10 list.
Top 10 Car Purchasing Drivers by Gender
With females beginning to play key roles in their families and careers, there has
been an increase of car ownership among women, and reaping the potential of this
consumer group requires a different focus.
Women Car Ownership
25%
23%
22%
23%
21%
21%
19%
21%
20%
Tier 1&2
Tier 3&4
17%
18%
15%
2011Y
2012Y
2013Y
Insights:
1. Automobile brands will benefit by adopting more emotional themes in their
communications when they target women car buyers.
2. Women buy cars for different reasons than men. For women, a car is a symbol
of style and identity like accessories or fashion. It has to make them look good
and match their personality.
3. Women are looking for more guidance and affirmation that their choice of car is
right.
The upper tier cities are more inclined to “buy” health, while the lower tier
cities prefer to change their lifestyles and habits for better health.
Respondents across the age group of 15-64 in the upper tiers are spending more
money on health supplements, and are less likely to consider an active lifestyle
(averaging 71.5%) as a means to keeping fit when compared to the lower tiers
respondents, with an average of 75.5% likelihood.
Lower Tiers Respondents Lead a More Active Lifestyle
I actively look for a lifestyle that is better for my health
77%
76%
75%
74%
73%
72%
71%
70%
69%
68%
75%
72%
Tier 1
76%
71%
Tier 2
Tier 3
Tier 4
Results also showed that while the upper tiers are more likely to “buy health”,
functional benefits are what differentiates health supplements brands in Tier 1 cities,
with “Safe/ no side effects”, “Has beauty effects”, “High nutritional values”, “Good
quality”, and “Nice taste” being the top 5 drivers for buying. Consumers in Tier 2, 3
and 4 cities placed comparatively more emphasis on emotional attributes, with “The
brand I like” ranked second for Tier 2 and 4 cities, and “Brand I can trust” ranked
third for Tier 3 cities.
Healthcare Category Drivers
Insights:
1. In higher tier cities, brands should focus more on the “concept of health”,
besides the pure rational benefits of the product. Cost of the product is not an
issue.
2. In lower tier cities, health is still more related to exercise and sickness. Brands
that want to play in the health space need to be clear not only what the
functional benefits are, but also how this can improve life.
###
About GroupM China
GroupM is WPP’s consolidated media investment management operation, serving
as the parent company to agencies including Maxus, MEC, MediaCom, Mindshare
and Xaxis.
GroupM is the global leading media investment management group.
GroupM invests in more than 560 markets across China, with an overall activity
volume of USD 7.3 billion (RECMA: 2012 Definitive). As China’s number one media
communications group, GroupM is the industry’s biggest investor in syndicated and
proprietary media research and optimization tool development.
About GroupM Knowledge
GroupM Knowledge is GroupM’s think tank and knowledge management arm in
China. This unit is responsible for industry-wide thought leadership research,
exploring issues affecting the media industry in China; working with syndicated
research suppliers, and managing the Group’s proprietary tools, research and
systems. The unit also manages a media consultancy, advising clients with specific
media research requirements.
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About Shan Hai Jin Research
Shan Hai Jin is GroupM’s proprietary consumer market research project,
independently developed to identify and understand market trends, covering an
extensive scope of Tier 1 to Tier 4 cities. The largest and most extensive project of
its kind in China, it is an indispensable asset to brand owners in their market
development in China.
The project is inspired by China’s oldest and most well-known geography book, The
Shan Hai Jin, that records the geography, customs, people, cultures and religions of
ancient China.
GroupM’s contemporary Shan Hai Jin deep-dives into the interaction between
consumers and their external environment, providing an in-depth understanding of
modern China for marketers and brand owners.
Media Contact:
Swee Lynn Chong
[email protected]
+86 21 2307 7701