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          Chinese consumers opting for local brands

          By Liu Jie (China Daily)
          Updated: 2008-03-28 09:48

          Chinese consumers prefer local brands to foreign ones, with domestic products the top choice in 39 of 57 categories, or 68 percent, in a recent survey.

          The "2008 Ideal Brands for Chinese Consumers" survey was conducted by the Business Brand Institute, International Advertising magazine and the Communication University of China.

          Two urban groups - household and potential consumers - were questioned for the survey, with 7,800 respondents nationwide.

          Household consumers have the most purchasing power and brand experience and are more sensitive to quality, reputation, service and price. Responses from this group accurately reflected brands' current standing in the market, the survey said.

          Senior university students formed the potential consumers group, which is in a transition period and has high brand awareness.

          This group is expected to become key purchasers when they graduate and enter the workforce. Respondents from this group provided a forecast for brand trends, the survey said.

          Local brands dominated the household appliance, clothing, edible oil, non-soda beverage, pharmaceuticals, banking and insurance sectors.

          But respondents preferred foreign brands for digital cameras, mobile phones, sportswear, snack foods, soda drinks, cars and personal care products.

          Haier was the top choice across three sectors - refrigerators, washing machines and water heaters. Meanwhile, respondents said Fotile was their preferred brand for kitchen ventilators and gas stoves.

          Foreign brand Sony was the No 1 choice for digital cameras and TVs, while Procter & Gamble's Olay brand won out in shower gels and body lotions.

          The survey also found that Chinese brands like China Mobile, China Telecom and Bosideng are stand-out performers in their industries - wireless communications, fixed telecommunications and down coats. These three brands were well ahead of their peers, with a gap of 40 percent to the next brand.

          "Unlike brand rating programs conducted by professional research institutes, '2008 Ideal Brands for Chinese Consumers' is the first consumer-concentrated large-scale survey on brands in China," Liu Libin, vice-chairman of BBI, said. He said Chinese consumers' brand awareness is increasing as the nation develops and living standards improve.


          (For more biz stories, please visit Industry Updates)

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