Foreign brands are trying to adapt to Chinese consumers, the second largest consumer market in the world, by adopting local marketing codes.
Despite the drop in sales on the luxury market in China, foreign brands compete in new features to adapt to Chinese consumers and cut a share in the largest consumer market in the world, CNBC reports. To seduce these demanding consumers, brands are betting on targeted marketing campaigns on the Chinese market, taking up local codes.
According to Joe Ngai, president of “Greater China” at McKinsey, Chinese consumers are indeed in demand of products including “more local elements”, which forces foreign brands to adapt to deal with the competition of Chinese brands.
In Shanghai for example, the luxury brand LVMH adapted to the history of the port city by opening this summer a cruise ship store, generating a strong local buzz.
See trends on the Chinese market come
“The winning brands are those that have established local R&D centers and local product teams,” said Ashley Dudarenok, founder of Chozan, marketing consulting firm in China. According to the latter, this allows brands to see the new trends in the Chinese market and launch products faster.
A recent campaign of the American brand of Ketchup Heinz, for example, was inspired by a popular Chinese dish, fried eggs with tomatoes, to promote its condiment to Chinese consumers. A strategy that bears fruit since the company announced sales up 4.2% over a year in China.
