Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

The Importance of Brands in Technology - China - June 2016

‘Chinese consumers are willing to pay premium prices for the technology brands they like. Constantly communicating innovation, setting up brick-and-mortar stores, engaging fans and users with marketing events as well as being socially responsible can help brands to foster popularity among Chinese consumers.’
– Terra Xu, Senior Research Analyst

This report examines the following issues:

  • The importance of brands in technology purchase
  • Building up word-of-mouth reputation
  • Attracting fans among affluent users

The technology market in China has become more competitive and fragmented. Fostering fans is important for technology brands, as Chinese consumers are willing to pay premium prices for the technology brands they like.

To drive brands’ popularity, constant innovation is essential. It is also important to communicate the innovation with consumers, for example, allowing them to experience the latest products in brick-and-mortar stores. Secondly, engaging fans in marketing communications can help brands to build up word-of-mouth reputation, which is important for Chinese consumers to decide their favourite brands. Last but not least, to appeal to affluent consumers, being socially responsible may help brands to stand out.

The services here refer to all services provided to consumers by internet companies via consumer technology products through the internet/apps and offline channels.

As for technology products, this report focuses on brands in personal computers, mobile phones and televisions. Other categories, such as home entertainment devices, cameras, portable media players and wearable products, are discussed where relevant.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this report
        • Personal computer (PC)
          • Mobile phone
            • Television (TV)
              • Camera
                • Gaming console
                  • Wearable digital products
                    • Demographic classification
                      • Household income
                        • Personal income
                        • Executive Summary

                            • Market trends
                              • Expenditure on technology and communication grows steadily
                                • Figure 1: Consumer expenditure, by sector, 2015
                              • Struggling smartphone markets
                                • Companies and brands
                                  • Key players
                                    • Competitive strategies
                                      • Innovation highlights
                                        • The consumer
                                          • Fiercely competitive technology market
                                            • Figure 2: Awareness and usage of leading technology brands, March 2016
                                          • Apple is the most liked technology product brand, while Samsung and Huawei vie for next place
                                            • Figure 3: Favourite technology product brands, March 2016
                                            • Figure 4: Reasons for favouring technology product brands, by brands, March 2016
                                          • ‘BAT’ are the most liked internet companies
                                            • Figure 5: Favourite internet service brands, March 2016
                                          • Being user friendly essential for internet service brands
                                            • Leading brands show differentiating competitive advantages
                                              • Figure 6: Reasons for favouring internet service brands, by brands, March 2016
                                            • Most consumers are potential loyal consumers of technology brands
                                              • Offering holistic ecosystem can help drive loyalty
                                                • Figure 7: Attitudes towards technology brands, March 2016
                                              • Offering promotions for existing users to attract future purchase
                                                • Figure 8: Attitudes towards technology brands, continued, March 2016
                                              • What we think
                                              • Issues and Insights

                                                • The importance of brands in technology purchase
                                                  • The facts
                                                    • The implications
                                                      • Building up word-of-mouth reputation
                                                        • The facts
                                                          • The implications
                                                            • Attracting fans among affluent users
                                                              • The facts
                                                                • The implications
                                                                • The Market – What You Need to Know

                                                                  • Expenditure on technology and communication grows steadily
                                                                    • Smartphone markets struggling after years of strong growth
                                                                      • State policies and consumers’ interest drive market growth
                                                                      • Market Trends

                                                                        • Expenditure on technology and communication grows steadily
                                                                          • Figure 9: Consumer expenditure, by sector, 2015
                                                                          • Figure 10: Chinese technology and communication expenditure and growth, 2011- 2015
                                                                        • Struggling smartphone markets after years of strong growth
                                                                          • Figure 11: Smartphone total volume sales and growth in China, 2011- 2015
                                                                        • State policies and consumers’ enthusiasm drive market growth
                                                                        • Companies and Brands – What You Need to Know

                                                                          • International players’ latest developments
                                                                            • Domestic players’ latest developments
                                                                              • Technology product brands building up holistic ecosystems
                                                                                • Internet service brands leverage power of VR, festival marketing and develop online financial services
                                                                                  • Experience stores help establish brand image and display products
                                                                                    • Smart devices applied in more areas
                                                                                      • Being moral
                                                                                      • Key Players

                                                                                        • International players
                                                                                          • Apple Inc.
                                                                                            • Samsung Group
                                                                                              • Microsoft Corporation
                                                                                                • Google
                                                                                                  • Amazon.com, Inc.
                                                                                                    • Domestic players
                                                                                                      • Baidu, Inc.
                                                                                                        • Alibaba Group
                                                                                                          • Tencent Holding Limited
                                                                                                            • Huawei Technologies Co. Ltd.
                                                                                                              • Xiaomi Inc.
                                                                                                              • Competitive Strategies

                                                                                                                • Building holistic ecosystems
                                                                                                                  • Leveraging the power of VR
                                                                                                                    • Holiday marketing
                                                                                                                      • Online financial services become essential for internet service brands
                                                                                                                      • Who’s Innovating?

                                                                                                                        • Experience stores help establish brand image and display products
                                                                                                                          • Huawei’s first experience store in Tokyo, Japan
                                                                                                                            • DJI’s store in Shenzhen to introduce drones
                                                                                                                              • Casio opens experience store for Exilim digital cameras
                                                                                                                                • Figure 12: Casio brick-and-mortar store, K11 Shopping Mall, Shanghai, May 2015
                                                                                                                              • Smart devices applied in more areas
                                                                                                                                • Smart watches for children
                                                                                                                                  • Smart pet feeders
                                                                                                                                    • Figure 13: FeedPeek smart pet feeders, at the Consumer Electronics Show Asia, May 2016
                                                                                                                                  • The ONE smart piano
                                                                                                                                    • Figure 14: The ONE Smart Piano Classroom, at the Consumer Electronics Show Asia, May 2016
                                                                                                                                  • Being moral
                                                                                                                                    • Apple going green
                                                                                                                                      • WeChat to the rescue
                                                                                                                                      • The Consumer – What You Need to Know

                                                                                                                                        • Fiercely competitive technology market
                                                                                                                                          • ‘BAT’ continues to dominate the market, while Apple and Huawei gain popularity in tier one cities
                                                                                                                                            • Leading technology brands face challenge from lapsed users as well as attracting trial
                                                                                                                                              • Apple is the most liked technology product brand, while Samsung and Huawei vie for next place
                                                                                                                                                • Product quality is the most important reason for preferring technology product brands
                                                                                                                                                  • ‘BAT’ are the most liked internet companies
                                                                                                                                                    • Being user friendly is essential for internet service brands
                                                                                                                                                      • Most consumers are potential loyal consumers of technology brands
                                                                                                                                                        • Innovative functions may drive consumers to switch brands
                                                                                                                                                          • Innovation can draw consumers’ interests in brands
                                                                                                                                                            • Optimistic outlook for paid internet services
                                                                                                                                                            • Awareness and Usage of Technology Brands

                                                                                                                                                              • Fiercely competitive technology market
                                                                                                                                                                • Figure 15: Awareness and usage of leading technology brands, March 2016
                                                                                                                                                              • The drop in usage implies a more fragmented market
                                                                                                                                                                • ‘BAT’ continue to dominate the market
                                                                                                                                                                  • Apple and Huawei gain popularity in tier one cities
                                                                                                                                                                    • Figure 16: Users of leading technology brands in tier one cities, March 2016 and July 2014
                                                                                                                                                                  • Samsung, Sony, Lenovo and Google face lapse in users
                                                                                                                                                                    • Figure 17: Lapsed users of leading technology brands, March 2016
                                                                                                                                                                  • Xiaomi, Amazon, Sony and Huawei need to attract trial
                                                                                                                                                                    • Xiaomi can use differentiate approaches to appeal to different demographic groups
                                                                                                                                                                      • Huawei on the way to consolidating brand identity
                                                                                                                                                                        • Amazon needs to attract more male consumers
                                                                                                                                                                          • Sony should continue offering high quality products
                                                                                                                                                                            • Figure 18: Non-users of leading technology brands, March 2016
                                                                                                                                                                        • Favourite Technology Product Brands

                                                                                                                                                                          • Apple is the most liked technology product brand
                                                                                                                                                                            • Samsung and Huawei compete closely
                                                                                                                                                                              • Figure 19: Favourite technology product brands, March 2016
                                                                                                                                                                            • International technology brands enjoy higher popularity
                                                                                                                                                                              • Domestic brands appeal to young consumers
                                                                                                                                                                                • Large minority of consumers in their 40s do not have favourite technology product brands
                                                                                                                                                                                  • Figure 20: Favourite technology product brands, by demographics, March 2016
                                                                                                                                                                              • Reasons for Favouring Technology Product Brands

                                                                                                                                                                                • Product quality is essential to develop fans
                                                                                                                                                                                  • Figure 21: Reasons for favouring technology product brands, March 2016
                                                                                                                                                                                • Leading technology product brands demonstrate various appealing features
                                                                                                                                                                                    • Figure 22: Reasons for favouring technology product brands, by brands, March 2016
                                                                                                                                                                                • Favourite Internet Service Brands

                                                                                                                                                                                  • ‘BAT’ are the most liked internet companies
                                                                                                                                                                                    • Older consumers and those with lower income care less about internet service brands
                                                                                                                                                                                      • Figure 23: Favourite internet service brands, March 2016
                                                                                                                                                                                    • Baidu is more popular among young consumers
                                                                                                                                                                                      • Tencent and Alibaba enjoy popularity across different demographics
                                                                                                                                                                                        • Offering business solutions drives favourability for Microsoft and Google
                                                                                                                                                                                          • Figure 24: Favourite internet service brands, by demographics, March 2016
                                                                                                                                                                                      • Reasons for Favouring Internet Service Brands

                                                                                                                                                                                        • Being user friendly is essential for internet service brands
                                                                                                                                                                                          • Figure 25: Reasons for favouring internet service brands, March 2016
                                                                                                                                                                                        • Baidu well performs in offering free services
                                                                                                                                                                                          • Tencent is well recognised for its mobile services
                                                                                                                                                                                            • Alibaba outperforms in terms of variety of services
                                                                                                                                                                                              • Microsoft enjoys good word-of-mouth reputation
                                                                                                                                                                                                • Sina should establish competitive advantage as information source
                                                                                                                                                                                                  • Google outperforms in being socially responsible
                                                                                                                                                                                                    • Figure 26: Reasons for favouring internet service brands, by brands, March 2016
                                                                                                                                                                                                • Attitudes towards Technology Brands

                                                                                                                                                                                                  • Most consumers are potential loyal consumers of technology brands
                                                                                                                                                                                                    • Innovation is important to promote premium prices
                                                                                                                                                                                                      • Offering a holistic ecosystem can help drive loyalty
                                                                                                                                                                                                        • Consumers want technology brands to reflect social status
                                                                                                                                                                                                          • Figure 27: Attitudes towards technology brands, March 2016
                                                                                                                                                                                                        • Innovative functions may drive consumers to switch brands
                                                                                                                                                                                                          • Consumers in their 30s and 40s care more about functions
                                                                                                                                                                                                            • Figure 28: Attitudes towards technology brands, continued, March 2016
                                                                                                                                                                                                          • Innovation can draw consumer interest in brands
                                                                                                                                                                                                            • Figure 29: Attitudes towards technology brands, continued, March 2016
                                                                                                                                                                                                          • Offering promotions for existing users to attract future purchase
                                                                                                                                                                                                            • Optimistic outlook for paid internet services
                                                                                                                                                                                                              • Figure 30: Attitudes towards technology brands, continued, March 2016
                                                                                                                                                                                                          • Meet the Mintropolitans

                                                                                                                                                                                                            • Mintropolitans prefer international brands
                                                                                                                                                                                                              • Figure 31: Favourite technology product brands, by consumer classification, March 2016
                                                                                                                                                                                                            • When it comes to tech brands having trustworthy leaders appeals more to Mintropolitans
                                                                                                                                                                                                              • Figure 32: Reasons for favouring technology product brands, by consumer classification, March 2016
                                                                                                                                                                                                            • Mintropolitans are less price sensitive about internet services
                                                                                                                                                                                                              • Figure 33: Attitudes towards technology brands, by consumer classification, March 2016
                                                                                                                                                                                                          • Appendix – Methodology and Abbreviations

                                                                                                                                                                                                            • Methodology
                                                                                                                                                                                                              • Mintropolitans
                                                                                                                                                                                                                • Why Mintropolitans?
                                                                                                                                                                                                                  • Abbreviations

                                                                                                                                                                                                                  Companies Covered

                                                                                                                                                                                                                  To learn more about the companies covered in this report please contact us.

                                                                                                                                                                                                                  The Importance of Brands in Technology - China - June 2016

                                                                                                                                                                                                                  £3,273.18 (Excl.Tax)