Tired of Tradition, China Wants Its DVD
---
Market Study Shows Modern Chinese Like New Technology, Not Karaoke
By Sarah Tilton
07/10/98
The Asian Wall Street Journal
Page 11
(Copyright (c) 1998, Dow Jones & Company, Inc.)
HONG KONG -- News flash for businesspeople traveling to China: Karaoke is on the way out.
A new study from advertising agency Grey China tracking consumer trends in Shanghai, Beijing, Guangzhou and Chengdu finds that impressing one's hosts no longer depends on the ability to croon time-honored favorites like "Moon River."
The survey, called ChinaBase 1998, also reveals that Chengdu has a sweet tooth, Guangzhou has a taste for cognac and in pitching a new product, go with the image of the modern -- not the traditional -- China.
This is Grey's third annual survey of Chinese consumer trends. The study was conducted in May using door-to-door interviews across a representative sample of 800 people aged 18-50.
The survey examines changes in consumers' habits as well as people's expectations for the future, says Colin Bates, director of strategic planning at Grey China & Hong Kong. The questions cover six categories of consumer goods: instant noodles, chewing gum, pain relievers, skin-care products, air conditioners and refrigerators. The survey also looks at people's feelings about their everyday lives and highlights regional differences and national similarities.
Mr. Bates says the most surprising shifts are in technology.
"The pace of change is astonishing. VCR sales have come to a stop. People are moving on to DVDs and VCDs," Mr. Bates says. The study shows that 52% of respondents have VCRs and only 1% have plans to buy one in the next three years, while 55% currently have VCDs and 9% plan to buy one in the next three years. In Guangzhou 18% of respondents plan to buy a DVD within the next three years.
Grey says the speed with which consumers switch their attention from old technology to new can wreak havoc with manufacturers' planning and suggests that manufacturers focus on expanding to new geographic markets within China.
Comparing grocery shopping habits in 1996 and 1998, Grey said the study showed buyers are migrating to a "Western" style of consumption. There has been marked growth in purchases of items like chewing gum and pain relievers. In 1998, 74% of respondents bought chewing gum versus 55% in 1996. In 1998, 38% of those surveyed bought pain relievers against 23% in 1996.
The results point out that shoppers don't always consider Western goods the best. Some 71% of those polled say they make an effort to buy Chinese brands over foreign brands, though Western brands like Wrigley's dominate the gum market.
The Chinese brand Wahaha dominates the crowded bottled-water market, in which 330 brands advertised on television in 1997, according to Grey. These brands are now trying to differentiate themselves by offering children's bottles, family-size bottles and cans.
The study suggests that when pitching a brand in China, a theme based on traditional Chinese lifestyles isn't a draw as 78% of people consider themselves "modernized Chinese."
Grey has good news for PC makers. Some 26% of those surveyed intend to buy their first home computer or replace their existing one in the next three years. Grey explains the demand for PCs is fueled by parents wanting to give their children a head start and people turning to the Internet for a window on the world.
Attitudes toward different leisure activities show there may be opportunities for companies in the sporting-goods field. Some 70% of respondents say they want to play more sports and 55% say they are likely to play more sports.
As for those Celine Dion wannabes, 33% say they'd like to fit in some karaoke, while 47% said they feel obligated to do so. "It suggests karaoke has become a social habit that people feel obliged to do but don't necessarily enjoy," Mr. Bates says.
In looking at regional spending patterns, the study finds that Guangzhou is the most status-conscious of the four cities. Respondents there have the highest demand for jewelry, cognac and expensive clothes. People in Shanghai have a penchant for nice kitchens and bathrooms.
Beijing residents favor time at the computer if they want to relax. According to the study, 81% of 18-34 year olds in Beijing said using the computer is their leisure activity of choice.
People in Chengdu, meanwhile, have the highest demand for tea bags as opposed to loose tea leaves.
The study also examines people's attitudes toward their daily lives. Some 84% of respondents are optimistic about the future and think change is a positive thing. However, the current social and economic changes are making 52% insecure about their jobs and causing 66% to cut spending.
|
