2022
0
China Evolving Retailing Trends: Guochao Market Report 2022
2022-05-25T04:09:22+01:00
OX1105467
3695
151561
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Report
en_GB
"Guochao is a trend of dynamic development, with traditional culture as its core value. It is necessary for brands to demonstrate their on-trend spirit through form/content innovation, such as digitalisation…

China Evolving Retailing Trends: Guochao Market Report 2022

£ 3,695 (Excl.Tax)

Description

Key Topics Discussed in this Report

  • What triggers Chinese consumers’ national pride?
  • The Guochao elements that consumers are most interested in
  • Changes in spending on Guochao products
  • Purchase drivers for Guochao products, especially time-honoured brands
  • Interested Guochao marketing innovations
  • Guochao’s impact on brand preference

Expert Insights from a Research Analyst

This report, written by Blair Zhang, a leading research analyst, delivers in-depth commentary and analysis to highlight trends and add expert context to the numbers.

Guochao is a trend of dynamic development, with traditional culture as its core value. It is necessary for brands to demonstrate their on-trend spirit through form/content innovation, such as digitalisation and fusion of popular culture. Traditional cultural elements are the core value of Guochao, and they are also the most important driver for consumers to buy Guochao products. In addition to expecting to see the revival of time-honoured brands, consumers also look forward to seeing more localised campaigns from international brands.”

Blair Zhang
Research Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Covered in this Report
    • Definition
  2. Executive Summary

    • The market
    • COVID-19 market disruption: risks and opportunities
    • Companies and brands
    • The consumer
    • Design with Chinese elements is the top reason for inspiring national pride
      • Figure 1: Brand characteristics that can inspire national pride, 2022
    • Symbolic Chinese classic elements earn the most appreciation
      • Figure 2: Interest in Guochao elements, 2022
    • Increasing spending on Guochao products was led by time-honoured food and domestic digital products
      • Figure 3: Changes in spending on Guochao products, 2022
    • Traditional cultural elements rank as top purchase driver
      • Figure 4: Purchase drivers for Guochao products, 2022
    • Secondary creation and technological presentation of traditional elements potential recipe for success
      • Figure 5: Guochao marketing innovations, 2022
    • Guochao element drives brand preference – both for domestic and international brands
      • Figure 6: Attitudes towards Guochao impact on brands preference, 2022
    • What we think
  3. Issues and Insights

    • Re-creation of traditional culture will become the core competence of Guochao’s development
      • Figure 7: Movie poster for White Snake 2: Green Snake, 2021
    • Guochao has not caused consumers to abandon international brands but they expect localised versions
      • Figure 8: Gucci’s ad for its tiger-inspired collection, 2022
      • Figure 9: Weibo post about Prada’s Year of the Tiger campaign, 2022
    • Time-honoured brands can revive by catering to Chinese lifestyles and creating buzz via social media
  4. Market Factors

    • Preferential government policies support local brand development
    • Major policy to build a leading sports nation boosts domestic sportswear brands’ appeal
    • Support for technological innovation helps domestic high-tech brands grow
    • Promoting traditional culture endows traditional culture elements with commercial value
      • Figure 10: The poetic dance The Journey of a Legendary Landscape Painting, 2022
    • Government encourages the development of domestic brands in the consumer goods market
    • Chinese brands gaining consumer preferences
    • Increasing national strength leads to stronger cultural confidence
    • Popularity of short videos has accelerated and expanded the dissemination of the Guochao sense
    • Consumers trust time-honoured brands more in the face of uncertainty
  5. COVID Influences

    • COVID-19 China context
    • COVID-19 impact on the market and consumers
    • Continued impact of the outbreak harms the retailing industry
    • Brands based in Shanghai have been hit hard due to the lockdown
    • Shopping channels have changed, especially in the lockdown area
    • Consumer spending confidence and financial wellbeing take a hit
  6. What’s In?

    • Dip deep into the value of national quintessence
    • Oreo launches forbidden city flavoured cookies
      • Figure 11: Cooperation between Oreo and Forbidden City, 2021
      • Figure 12: Oreo-style Forbidden City, 2021
    • Huaxizi promotes ethnic beauty
      • Figure 13: Huaxizi Miao Impression Haute Couture Series, 2020
    • Shang Xia applies Chinese traditional craftsmanship to luxury product design
      • Figure 14: Shang Xia’s tea set with traditional Chinese handicrafts, 2022
    • Li Ning interprets modern trend culture from the perspective of traditional culture
      • Figure 15: Li Ning’s fashion show besides the Himalayas, 2021
    • Revival of time-honoured brands
    • Time-honoured brands refreshing the brand image by crossing over with emerging cultures
      • Figure 16: Collaboration between Scent Library and White Rabbit, 2019
      • Figure 17: Collaboration between Wufangzhai and the King of Glory, 2021
    • Technology empowers Guochao
    • Dunhuang Museum moves Chinese traditional artwork online
      • Figure 18: The virtual artwork of Dunhuang Museum, 2022
    • Guochao is approaching entertainment and leisure life
      • Figure 19: Guochao Music Carnival, 2021
  7. National Pride Associations

    • Design with Chinese elements ranks top for inspiring national pride
      • Figure 20: Brand characteristics that can inspire national pride, 2022
    • Stimuli different for each generation
      • Figure 21: Brand characteristics that can inspire national pride, by generation, 2022
    • High-income families appreciate traditional crafts more
      • Figure 22: Brand characteristics that can inspire national pride – manufactured by traditional Chinese craftsmanship, 2022
    • Time-honoured brands may find potential audiences by cooperating with live shows
      • Figure 23: Brand characteristics that can inspire national pride, CHAID analysis
  8. Interest in Guochao Elements

    • More than half are interested in Chinese classic symbols
      • Figure 24: Interest in Guochao elements, 2022
    • Guochao element preference differs among regions
      • Figure 25: Interest in Guochao elements, by region, 2022
    • High-income families possess stronger cultural confidence
      • Figure 26: Interest in Guochao elements, by household income, 2022
    • More females adopt classic symbols, regional features and leisure activities
      • Figure 27: Interest in Guochao elements, by gender, 2022
    • Brands with ancient crafts may find a target group in pet owners
  9. Changes in Spending on Guochao Products

    • Time-honoured food brands are most popular
      • Figure 28: Changes in spending on Guochao products, 2022
    • Post-90s and post-80s at the forefront of increased spending on Guochao products
      • Figure 29: Changes in spending on Guochao products – spend more, by generation, 2022
    • Females devote more money to Guochao products, especially to beauty and outfit categories
      • Figure 30: Changes in spending on Guochao products, by gender, 2022
    • Guochao spending is more popular in tier 1 cities
      • Figure 31: Changes in spending on Guochao products, by city tier, 2022
  10. Purchase Drivers for Guochao Products

    • Traditional cultural elements rank as top purchase driver
      • Figure 32: Purchase drivers for Guochao products, 2022
    • Male consumers value customisation and uniqueness
      • Figure 33: Purchase drivers for Guochao products – designed for Chinese consumers, by gender and generation, 2022
    • Nostalgia style another important purchase driver
    • Success factors of time-honoured brands
      • Figure 34: Purchase drivers for Guochao products, by spending more on time-honoured restaurants or packaged food, and by interest in time-honoured Chinese brands, 2022
    • Technological design is a plus to attract post-70s and 80s in tier 1 cities
      • Figure 35: Purchase drivers for Guochao products – technological elements, by generation and city tier, 2022
  11. Interest in Guochao Marketing Innovations

    • Secondary creation and technological presentation of traditional elements attract consumers the most
      • Figure 36: Guochao marketing innovations, 2022
    • Technology helps Guochao get closer to consumers
      • Figure 37: Guochao marketing innovations – technological experience, by household income, 2022
    • Young consumers and pet owners are eager to co-create
      • Figure 38: Guochao marketing innovations – invite consumers to co-create products, by generation, 2022
    • Co-branding can help gain attention
      • Figure 39: Official announcement of cooperation on WeChat public accounts, 2020
  12. Attitudes towards Guochao

    • Brands should respect Chinese culture when approaching consumers with a Guochao topic
      • Figure 40: Attitudes towards Guochao element’s impact on shopping choice, by generation, 2022
      • Figure 41: Attitudes towards brands’ misinterpreting the concept of Guochao, by household income, 2022
    • Post-80s and post-90s are the target audience for international brands’ localisation
      • Figure 42: Attitudes towards brands’ preference, by generation, 2022
      • Figure 43: Attitudes towards international brands using Guochao elements, by generation, 2022
      • Figure 44: Attitudes towards international brands’ localisation, by generation, 2022
    • International brands can use Chinese classic symbols to open up the market
      • Figure 45: Interest in Guochao elements, by attitudes towards international brands that use Chinese elements, 2022
  13. Appendix – Methodology and Abbreviations

    • Methodology
    • CHAID Analysis
    • Abbreviations

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