Brand loyalty emerges in China, very slowly - Shaun Rein

Shaun Rein

Chinese consumers belonged to the least loyal to brands. And although brand loyalty is on the rise, China only shows a slow improvement. Business analyst Shaun Rein explains why to CKGSB Knowledge. “Loyalty is happening because consumers are getting sophisticated."

CKGSB Knowledge:

Meanwhile, in the world’s younger economies, particularly China, companies face a different challenge: as markets consolidate, consumers are selecting a few favorites. “Chinese consumers are definitely increasingly brand loyal in some categories,” says Shaun Rein, Managing Director of the China Market Research Group in Shanghai. 

Unlike Westerners who grew up loyal to particular brands, Chinese consumers did not grow up with particular brands or have parents who could teach them what was good, according to Rein. But through trial and error, they have now begun to settle on products they like. For example, he says, many Chinese customers have become attached to AMOREPACIFIC or La Mer in cosmetics, ECCO in men’s shoes, BMW or Porsche in autos, Apple in phones, Tencent in internet and Yili or Bright Food in dairy. 

“Loyalty is happening because consumers are getting sophisticated—they know what they want now and go for the brands that have the right mix of quality and brand position that fit their lifestyle wants,” Rein explains.

More at CKGSB Knowledge.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

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