Posted on 08/21/2006 9:11:03 AM PDT by stainlessbanner
ATLANTA--(BUSINESS WIRE)--Aug. 21, 2006--What do blue jeans, DVDs, moisturizer and athletic shoes have in common? They are among the American products that Chinese consumers desire most, according to a UPS survey of 1,200 middle-class consumers in six Chinese cities.
The second annual UPS survey of Chinese urban consumers - often referred to as "Chuppies" - reaffirms their demand for high-quality U.S. products and unearths more detailed insight into their buying preferences and demographic differences. UPS, which flies to more points in China than any other U.S. airline, commissioned the survey to help its customers do business in the world's fastest-growing market.
"The survey highlights the need for small-to-mid-sized businesses to be prepared and focused on exactly what it is they want to accomplish by entering China," said Kevin M. O'Connell, senior partner of the law firm O'Connell and Co., which handles foreign direct investment and general business matters in China. "They need to set themselves apart from their competition and from the large multi-nationals and market to a very specific niche."
The most sought-after products in this year's survey were American videos/DVDs, music or books and consumer electronics - which also were the top categories in the 2005 survey. For those Chinese consumers interested in purchasing products in the following categories, some specific findings include:
- More than three-quarters (76%) of urban Chinese consumers say that they would like to buy American DVDs in the coming year (up from 71% in 2005), and 60% say they would like to buy American CDs (up from 51%).
- Moisturizer is the most attractive American beauty product to Chinese consumers, with 73% saying that they are likely to purchase it in the coming year.
- More than 70% of consumers say they want to buy American athletic shoes and 64% say they want to buy blue jeans, up substantially from 2005 numbers.
- The most desired American home appliance is a washer-dryer, with almost one-third of consumers saying that they were most likely to purchase one in the coming year.
When considering imported products, 85% of Chinese consumers say that quality is a critical factor in their purchasing decision. "I think quality is very important," said Jennifer Cheng, 33, of Beijing. "It is especially important for high-tech products such as laptops or mobile phones."
Not a mass market
Much like the United States, China is a melting pot of demographic distinctions and the survey reveals varying purchasing preferences by age group, gender and location. For example, younger consumers are more open to buying U.S. products in general than their older counterparts. Younger consumers also say that they buy imported products to enhance their image and status, with laptop computers, video/digital recording systems and coffee makers among the most attractive American products to them.
"Older consumers grew up during much harder times and their life experience is analogous to the Great Depression generation in the United States," said Sam Flemming, CEO and founder of CIC Data, a China-based Internet market intelligence service. "Younger consumers have grown up with more money and are used to being bombarded with marketing messages. This means they are less inclined to 'penny pinch,' have more disposable income and are more informed about products and services."
Thinking inside the box
Some interesting information emerges from the survey to help businesses market to Chinese consumers. For example, more consumers (56%) want to hear messages about quality ingredients or workmanship in advertising about American products. This number increases to 65% when it comes to advertising fashion and apparel. Young consumers prefer celebrity endorsements in advertising, whereas older consumers would rather see professional endorsements.
In terms of packaging, the survey found that younger, high-income consumers prefer American or Western-style packaging, especially for beauty products. And 37 percent of consumers say that they prefer blue packaging for American products - nearly double the next color choice (white at 19%).
More opportunities to reach Chinese consumers likely will emerge as their use of credit cards and frequency of online shopping increases. The survey reveals that more than half of urban Chinese consumers use credit or debit cards for shopping, and 84% of those with credit cards expect their usage to increase or remain the same in the coming year.
"China presents tremendous opportunity for U.S. businesses, and not just as a manufacturing base," said David Abney, president, UPS International. "China is one of the fastest growing markets for U.S. exports. Our hope is that the survey findings will help U.S. businesses consider what opportunities may exist for their products in China."
UPS offers a range of services to help businesses deliver to China. Last year, the company became the first carrier in the industry to acquire direct control of its operations in China. This year, the company expanded its international express service to 22 more business locations in China, bringing total number of cities served in the country to 330. Those cities account for roughly 85% of China's international trade. Most recently, UPS opened two retail centers in Shanghai, giving customers there greater shipping convenience.
For full survey results and other information about doing business in China, log onto www.pressroom.ups.com/chinasurvey.
UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at UPS.com.
About the survey
Conducted by Research International, the survey was a quantitative study of 1,200 Chinese consumers in six Chinese cities: Beijing, Shanghai, Guangzhou, Shenyang, Chengdu and Wuhan. Respondents were all between the ages of 20 and 59 and have high household income levels in China (monthly income of RMB 3,000 or above in Beijing, Shanghai and Guangzhou, and RMB 2,000 or above in Shenyang, Chengdu and Wuhan). The survey was conducted as computer-aided telephone interviews between June 2 and 20, 2006.
I hear that the automobile in China with lots and lots of status is, are you ready for this? A Buick! No kidding!
Why Third World dictators, Imams, and leftists hate the US. Because given the choice, most people worldwide want to be like us.
Wouldn't you really rather have a Buick? A Buick? This Year!............
I just bought a pair of athletic shoes made in Vietnam; the old beat-up official MLB St. Louis Cardinals cap I wear for yardwork was made in China; and my new Levi's were made some place in the Orient as well.
I'd like to buy some U.S.-made products too.
(More than three-quarters (76%) of urban Chinese consumers say that they would like to buy American DVDs in the coming year)
Of course, it's the Dark Blue Hollyweird that gets to profit.
On another topic, it's amazing how much the third world still love the American car. They still think Japanese cars are crap. It's as if their opinions froze after the 70's. Good for GM!
Tiger's got a Buick...I think.
Yes, I believe he's their celeb duJour, For the Golfing Fan Retirement set..........
but just don't look in his 20 car garage, because there is 1 buick he was given for doing the commercials that he lets his servants drive to the store, the other 19 are Bentleys, Ferraris, Lamborghinis, Mercedezs, and blinged out SUVs.
I'm sure you are correct. I wonder how big his garage really is? Does he have more than one?
Good on Tiger. He is remarkable.
What? Chinese consumers are buying stuff from America? But everyone knows the godless commies are bent on pillaging America through insidious manufacturing and export. This story has to be part of an inscrutable plan by Wal-Mart to undermine the WM-bashers here in the US. Oh, wait. Wal-Mart's run by round-eyes. Substitute Rovian for inscrutable.
If you'd truly like to you can:
I wear Wrangler jeans, Dickeys khakis, and New Balance running shoes.
BTW, the Buicks sold in China are made in China...
The real mystery is where the Chinese got the idea from that these items are made in America.
Thanks for the tip. Even though I spend most of my day sitting on my duff, I wear out the Dockers pretty fast. I've seen the Dickies and they look more durable.
I hear that the automobile in China with lots and lots of status is, are you ready for this? A Buick! No kidding!
The last New Balance shoes I saw were made in...you guessed it...China.
Ha!
Good freekin luck with that.
I just rebuilt the front brakes on my '78 Chevy El-Camino.
I had to order the parts from the local parts store, the calipers were U.S. rebuilds, the hubs and rotors were made in China.
The bearings came from Poland.
All were U.S. brands.
Keep replacing parts and that El Camino of yours will qualify as an import!
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