All this highlights the resilience and vitality of the Chinese economy
According to a report by Nielsen China, Chinese national brands stabilize the Chinese market. Thus, the Chinese Consumer Trend Index (CTI) in the second quarter of 2019 remained at a high level of 115 points, similar to that of the last quarter, fueled by better welfare and price stability.
Justin Sargent, president of Nielsen China, commented: “As the supply-side structural reform advances and the implementation of the policy to ensure ‘six stabilities’ is accelerated, the economic structure has been continuously optimized, and the endogenous power of the economy has been enhanced. It highlights the resilience and vitality of the Chinese economy and effectively facilitates long-term stable development”.
Second-quarter GDP increased by 6.2% on an annual basis
According to the China National Bureau of Statistics, GDP in the second quarter increased by 6.2% on an annual basis, the per capita income of residents grew by 6.5%, house prices remained stable and retail sales total consumer goods increased by 8.1%. Overall, the national economy operated in a reasonable range and continued the general trend of stable growth, laying solid foundations for the rise of the Chinese CTI.
Furthermore, the Chinese market is also showing a new trend. In particular, the CTI in the second quarter saw the rise of local brands, with people in high-level cities more willing to buy local products. So, according to the recently published report, over 60% of consumers prefer to buy local brands and the market share of national brands continues to grow.
Cost performance remains one of the key factors for consumers in choosing national brands, but national symbolism and consumer recognition of brands are two other factors behind the growth of domestic products.
Consumers, especially young people, are passionate about traditional Chinese culture and symbols
Sargent added: “Consumers in top-tier cities are paying more attention to Chinese characteristics and cultural inheritance, which is also a reflection of the rise in cultural awareness and cultural self-confidence“. Furthermore, according to Sargent, the clearer and more solid attitude of national brands has succeeded in successfully conquering consumers.
For example, with crossover cooperation between classic brands, Li Ning’s revenue increased by 18.45% and net profit increased by 39% in 2018. Consumers, especially young people, are passionate about culture and Chinese traditional symbols. Therefore, they tend to choose national brands and products for their traditional aesthetics, cultural penetration and self-recognition.
The data also showed that 34% of consumers are more willing to support and buy national brands, of which men (36%) show more availability than women (34%), and consumers in first and second level cities (52 %) are more available than those in rural areas and fourth level (29%). Furthermore, 15% of consumers buy national brands because they recognize the spirit of the brand.
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