Will Chinese Pay Extra to Firms With Purpose?

Friday, August 17, 2012 8:24

Playing off my previous posts, Could a Shared Economy Work in China? and Do Chinese Consumers Care? Really?, a recent Edelman goodpurpose study, which surveyed 500 people across 16 countries, came to the conclusion that Chinese consumers are more likely than their U.S. counterparts to buy items that are “good” and support responsible businesses.

something which I am still trying hard to accept, but there was one line in the study that for me is the money quote:

“The brand loyalty numbers have really plummeted in China, there have been a lot of really bad actors with companies treating their employees poorly or they’ve got ingredients in food that are just cutting corners,” Cone says; this state of affairs forces consumers to be extra conscious of purpose. “We’re not calling them consumers, we’re calling them citizen consumers, they’re utilizing social media and they’re really investigating what the company stands for.”

which brings me back to my previous posts, and the assertion that I have been making when it comes to the “good” consumer. That in China, consumers are seeking out “good” companies largely out of fear.

Tangible fear that a product made locally will hurt them, or those close.

Which is a very different environment than what the average person living in the States is used to (today), or would have  a tangible buy decision for.

So, as mentioned before, for markets like food, children’s products, healthcare, education, and senior care, I believe that there are large markets for these products and service in China. Today and going forward.  And unlike in the U.S., the premium is not a core factor in the decision, nor will it prevent the purchase of the item. Assuming the product/ service is KNOWN to be “good”.

Something I would say Edelman’s study validates, and I hope encourages more “good” firms to consider China as a market.

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2 Responses to “Will Chinese Pay Extra to Firms With Purpose?”

  1. New Data on Positive Market For Made in the West Goods in China : China Business Leadership Blog says:

    August 19th, 2012 at 6:23 pm

    […] All Roads to China put up a bar chart showing China is number 1 in one category of buying.Take a look here […]

  2. Summit View Partners says:

    August 20th, 2012 at 2:49 am

    I completely agree. I think Chinese consumers are becoming very much more savvy, in particular networks like Weibo are driving this change.