Happy 2018! The year has started off on a positive note with China’s premier Li Keqiang announcing last year’s GDP growth is expected to roll in at 6.9% – north of the 6.5% target and the first acceleration in seven years; a time when GDP was less than 40% of today’s value. Consumers’ enthusiasm to shop continues to drive this growth accounting for almost two thirds of the 6.9% with retail spending growing 10%.
Although consumer anxieties persist and concerns around food safety and the cost of health and education are common, the signs are pointing to 2018 becoming another bumper year of the Chinese consumer. Whilst well-marketed foreign brands still hold significant appeal across many consumer categories, brands should be aware that shoppers are less inclined to view foreignness with the same awe and curiosity as they once did.
Chinese are showing increasing pride and interest in Chinese heritage and nostalgic themes. 2017 wrapped up with some gleaming examples such as CCTV’s show about Chinese antiques receiving millions of views, rave reviews and social posts from Chinese millennials. Even more widespread was a New Year fad which saw Chinese cluttering their social media feeds with old photos of themselves.
Few things inspire, influence and indicate preferences more than cinema. Last year five of China’s six most popular movies were domestic productions, including the overtly nationalistic Wolf Warrior which broke all-time box office records for the country.
Chinese consumers’ increasing interest in their roots was always going to happen as they matured, but it has been accelerated in light of a strong, confident and consistent China leadership and wavering heads of state in the West, amplified by the all-powerful state media.
So does this all mean that the foreignness of imported brands is becoming irrelevant? Definitely not. Foreign brands should promote the characteristics of their origin and heritage that make them special, but not with the blind swagger that some have portrayed in the past. They should also consider the opportunities to tap into the growing resonance of the Chinese renaissance through thoughtful communications, promotions and product development. Agencies such as China Skinny can assist with such initiatives. Go to Page 2 to see this week’s China news and highlights.