China’s young consumers are snubbing foreign brands, says Credit Suisse
March 27, 2018 Category China News Round-up, Weekly
China is seeing the emergence of a generation of consumers who are more likely to chose home-made brands, spurred by a growing sense of national pride, according to a survey by Credit Suisse. The old adage that foreign brands are superior no longer holds true for young Chinese shoppers, who are increasingly showing a “domestic brand bias” amid “a degree of nationalism”, the study found.
More than 90% of Chinese consumers in the 18 to 29 age bracket said they would prefer to buy domestic home appliance brands in the next six to 12 months, Credit Suisse’s eighth annual emerging consumer survey found. The percentage of those aged 18 to 65 who said they would be willing to pay more for domestic sportswear brands than for international ones has increased to 19% last year from 15% in 2010. The results of the study also suggest China’s young consumers are becoming more assured in their choices, spending more money on leisure, travel and goods that enhance their lifestyle.
“We are surprised to see the rising of a more confident generation of consumers in China,” said Charlie Chen, head of China consumer research at Credit Suisse. “Chinese consumers, especially the younger generation, don’t just believe the notion that foreign brands are better. Right now, Chinese consumers think China is good and ‘Made in China’ is not bad at all.” Chen believes the trend is partly attributable to a push by the authorities to encourage residents to feel more attached to Chinese culture, including the opening of more Confucian institutes, while another factor is likely to be the growing influence of Chinese companies on the global stage. “Like it or not, China is becoming a major power globally, which makes the younger generation feel more proud to be Chinese,” he said at a press conference when the report was released. China has seen the emergence of a number of national corporate champions over the past three decades, including Haier, Alibaba and Tencent, all gaining global market share and expanding their operations and influence both at home and abroad.
Credit Suisse’s study was based on 14,000 face-to-face interviews with consumers in emerging economies including China, India, Mexico, Russia and Brazil, the South China Morning Post reports.
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