According to Nielsen's latest research, Chinese consumers disagree with the notion of "not caring about brand origin, only choosing the cheapest," ranking second highest in disagreement among 63 surveyed countries, with 70% of respondents disagreeing. This data indicates that brand origin is crucial to Chinese consumers. Nielsen's newly released report, "Competition and Progress: The Game Between Multinational and Local Enterprises," aims to study the strengths and weaknesses of Chinese and foreign enterprises and how they can learn from each other to drive development. Chinese Consumers Value Brand Origin, Local Enterprises Gain Market Share Only 30% of Chinese consumers said they "don't care about brand origin (local vs. multinational), only choose the cheapest," which is significantly lower than the global average of 42%. Thai consumers had the highest agreement with this statement, at 59%. "As income and living standards rise, Chinese consumers' requirements for products are no longer just 'cheap,' but more focused on 'good quality.' The trend of consumption upgrading is increasingly evident. They believe that good brands are a guarantee of product credibility, so they seek out brands with better product quality assurance," said Wei Shao, General Manager of Nielsen Greater China. The study shows that overall, from 2006 to 2016, local enterprises' sales share in the Chinese market grew slowly and steadily, from 66.5% in 2006 to 69.8% in 2016, showing a healthy overall trend. Correspondingly, multinational enterprises' market share has decreased. However, in certain sectors, multinational enterprises perform well. In personal care (e.g., hair care, skin care), ready-to-eat foods (e.g., candy/chocolate, biscuits), and infant products (e.g., baby formula, diapers), multinational enterprises account for over 60% of sales, showing clear advantages. In dairy products (including milk, yogurt), grain and oil side dishes (e.g., instant noodles, canned goods), beverages (including water, juice), and household cleaning and paper products (including laundry care, furniture cleaning), local enterprises have a more prominent advantage. In the dairy category specifically, local enterprises have held 98% of sales share for three consecutive years, nearly dominating the market. New Products Help Local Enterprises Gain Share and Drive Category Development Nielsen research shows that compared to multinational enterprises, local enterprises' advantageous categories are growing faster. In 2016, among the top 30 FMCG categories, local enterprises' sales growth rate for facial masks was 12.6%, the highest among all categories. Additionally, in categories such as ready-to-drink tea, yogurt, and packaged water, local enterprises hold a prominent position, exceeding the average sales growth rate of their categories. The reason behind this is largely due to local enterprises being more proactive in launching new products, with new product concepts emphasizing "Chinese" elements. For example, "ginger shampoo" and "red date-flavored beverages"—many products with Chinese characteristics have become the "trump cards" for local enterprises. "Previously, some consumers might have worried about the food quality of local enterprises, as if 'domestic' and 'substandard' were linked. But local enterprises have recently been paying more attention to product quality control, and based on consumers' emphasis on health, they leverage their local advantages to innovate products, linking 'domestic' with 'natural' and 'healthy,' greatly promoting the development of domestic brands," Wei Shao said. However, Nielsen research shows that relying solely on local enterprises' efforts cannot achieve greater progress. To this end, in recent years, local and multinational enterprises have deepened cooperation. The expansion model of joint ventures is becoming more common, and strategies to learn from each other's strengths are increasingly popular. Especially in the food industry, local and multinational enterprises are beginning to complement each other through flavors, ingredients, and other means. For example, Synutra has built a factory in France, and Belvita breakfast biscuits have introduced apple and red date flavors. This model not only benefits the growth of both enterprises but also provides consumers with products that have a "globalized" style. Multinational Enterprises Lead in E-commerce and Marketing Strategy Nielsen research shows that foreign enterprises started early in e-commerce, especially internet brands among multinational companies. They employ rich tactics for e-commerce channels, such as "celebrity limited editions," "personalized customization," "overseas selections," "scenario-based bundles," and "online exclusives," attracting a large number of consumers to purchase products online. Currently, local enterprises are also accelerating the establishment of e-commerce marketing systems, but their methods are relatively simple, mostly relying on "hot products," which attract consumers through huge monthly sales volumes. In addition, multinational brands pay more attention to catering to fashion trends, attracting consumers, and promoting event marketing. Specific methods to guide consumption trends include search engine optimization, KOL live-stream recommendations, paid platform advertising, WeChat promotion, etc. Event marketing involves direct cooperation with sports events or music festivals and other crowd-gathering projects. These two marketing approaches are highly critical and influential, and are worth learning from for local brands. Source: Nielsen Market Research (ID: Nielsen_China) -END-