2022
8
China Fan Economy Market Report 2022
2022-03-05T03:02:05+00:00
REPF5806297_528C_4269_A671_679C0C9551C1
3695
148463
[{"name":"Marketing and Advertising","url":"https:\/\/store.mintel.com\/industries\/marketing-advertising"}]
Report
en_GB
“Today’s more sophisticated Chinese consumers are seeking a deeper connection with brands beyond products and are growing to become brand fans. The job of brands is not only informing consumers…

China Fan Economy Market Report 2022

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“Today’s more sophisticated Chinese consumers are seeking a deeper connection with brands beyond products and are growing to become brand fans. The job of brands is not only informing consumers of the latest trends, but also providing a sense of companionship and reflecting their values and personality. In response, brands have the chance to initiate more charity/sustainable activities and strengthen their brand images as caring brands, while showcasing transparency around both strengths and weakness and further involving brand fans in co-creation to make brands appear more approachable.”
– Yuxi Shao, Research Analyst

This Report looks at the following areas:

  • Innovative marketing activities that help brand build fans
  • Brands with considerable brand fans
  • What makes a brand popular
  • Typical behaviours of brand fans
  • Appealing interactions with brands
  • Unfavourable factors towards brands
  • Current brand-consumer relationships and expectations
Collapse All
  1. Overview

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

    • The market: key market factors
    • High willingness to try new things poses challenges for building brand loyalty in China
      • Figure 1: Tendency of switching and persistency, 2020
    • New way of leveraging fan economy redirects consumer passion from real-life to virtual idols
      • Figure 2: Attitudes towards celebrity endorsement, by age, 2021
    • Purchases as an extension of personal tastes and self-identity
    • Companies and brands: what’s working?
    • Big brands: from leading innovations to driving good values
    • Legacy brands: projecting a modern image without losing brand equity
    • Lifestyle brands: be vocal about values and life aspirations
    • The consumer
    • Long-standing brands generally outperform in brand loyalty
      • Figure 3: Top 10 favourite brands in each category, 2021
    • Brand value figures highly in driving affinity
      • Figure 4: Preference factors, 2021
    • Long-time loyal fans could still be sensitive to price
      • Figure 5: Behaviours of brand fans, 2021
    • New product review activities give brand fans a sense of exclusivity
      • Figure 6: Ways to interact with one’s favourite brand, 2021
    • Poor innovation and lack of engagement on social issues could also severely impact brand image
      • Figure 7: Unfavourable factors, 2021
    • Brands are expected to provide a greater variety of experiences
      • Figure 8: Attributes associated with and expected from favourite brand, 2021
    • What we think
  3. Issues and Insights

    • Devotion to sustainability represents forward-looking brand values
    • The facts
    • The implications
      • Figure 9: Blue Sky Lab, 2022
      • Figure 10: Stan Smith Mylo, 2022
      • Figure 11: Upcycle by Miu Miu, 2022
    • Being transparent about both strengths and weakness makes brands more approachable
    • The facts
    • The implications
      • Figure 12: Xiaozhuo price tag, 2022
      • Figure 13: ‘FCK, We’re Sorry’ campaign, 2018
    • Co-creating to let brand fans’ voices be heard and appreciated
    • The facts
    • The implications
      • Figure 14: Co-creation project of HomeFacialPro, 2020
      • Figure 15: Ikea’s “Let’s Play for Change” campaign, 2022
  4. Market Factors

    • Chinese consumers generally show high openness to new trends and choices
      • Figure 16: Tendency of switching and persistency, 2020
    • From real-life to virtual celebrities, brands are looking for different ways to capitalise on fan economy
      • Figure 17: Attitudes towards celebrity endorsement, by age, 2021
    • Rising needs in self-identity drive the development of Buydeology
  5. Marketing Activities

    • A caring brand, not just an innovative brand
      • Figure 18: Huawei Cloud medical healthcare solution, 2022
      • Figure 19: Alipay’s “Blue Wind Chimes” program, 2022
      • Figure 20: The work uniform of Meituan food delivery riders, 2021
    • Legacy brands still need to stay relevant
      • Figure 21: Tiffany’s “About Love” Campaign, 2021
      • Figure 22: “Year of the Tiger” Limited Bottle, 2021
      • Figure 23: “Taller” Want Want Milk, 2021
    • Inspire consumers’ way of life
      • Figure 24: Uniqlo Flower Store, 2021
      • Figure 25: “Muji Verse”, 2021
      • Figure 26: ToSummer products, 2022
      • Figure 27: Saturnbird’s “Project Return”, 2021
  6. Favourite Brands

    • Long-established brands generally stand out
      • Figure 28: Favourite brand, word cloud generated by open-end, 2021
    • Brand loyalty is strongly correlated to market share
      • Figure 29: Top 10 favourite brands in each category, 2021
      • Figure 30: Favourite brand, word cloud generated by open-end, by category, 2021
  7. Preference Factors

    • Besides product performance, brand power is also emphasised
      • Figure 31: Preference factors, 2021
    • Beauty brands rely more on brand value, technology brands more on innovativeness
      • Figure 32: Preference factors – Ranking first, by brand category, 2021
    • Young generation more value-oriented in their brand selection
      • Figure 33: Preference factors – Ranking first, by age, 2021
  8. Behaviours of Brand Fans

    • Even long-time fans can be price sensitive
      • Figure 34: Behaviours of brand fans, 2021
    • Eagerness to own new launches is similarly high across different categories
      • Figure 35: Selected behaviours of brand fans, by brand category, 2021
    • High-level brand fans show higher engagement with brands, but similar price sensitivity
      • Figure 36: Selected behaviours of brand fans, by preference factors, 2021
  9. Interaction with Brands

    • Providing consumers with a sense of exclusivity and belonging
      • Figure 37: Ways to interact with one’s favourite brand, 2021
      • Figure 38: Ways to interact with one’s favourite brand – TURF Analysis, 2021
    • Beauty brand fans resonate well with new product trials and experiential activities
      • Figure 39: Selected ways to interact with one’s favourite brand, by product category, 2021
    • Charity and sustainable activities particularly appeal to high-income consumers
      • Figure 40: Ways to interact with one’s favourite brand, by monthly household income, 2021
  10. Unfavourable Factors towards Brands

    • Price increases, failure to innovate and lack of engagement on social issues could also alienate consumers
      • Figure 41: Unfavourable factors, 2021
    • Be careful with price increases in certain sectors
      • Figure 42: Selected unfavourable factors, by brand category,2021
    • Unprofessional salespeople, wrong choice of celebrities and “brainwashing” advertising turn off young consumers
      • Figure 43: Unfavourable factors, by age, 2021
    • Engaging with social issues especially matters for high-level brand fans
      • Figure 44: Selected unfavourable factors, by preference factors, 2021
  11. Relationship with Brands

    • Brands need to become more experiential
      • Figure 45: Attributes associated with and expected from favourite brand, 2021
    • Consumer expectations vary by product category
      • Figure 46: Selected attributes expected from favourite brand, by brand category, 2021
    • Key analysis of leading brands by sector
    • Apple outperforms in introducing new trends and Huawei in value resonation, while Xiaomi needs improvement
      • Figure 47: Attributes associated with favourite brand, by selected brands, 2021
      • Figure 48: Attributes associated with and expected from favourite brand, by selected brands, 2021
    • Nike and Adidas maintain leadership in design but can be more experiential
      • Figure 49: Attributes associated with favourite brand, by selected brands, 2021
      • Figure 50: Attributes associated with and expected from favourite brand, by selected brands, 2021
    • Estee Lauder is expected to do better in introducing trends and matching values
      • Figure 51: Attributes associated with and expected from favourite brand, by selected brands, 2021
    • Ikea, the home industry leader, can be more experiences-driven to further boost brand power
      • Figure 52: Attributes associated with and expected from favourite brand, by selected brands, 2021
  12. Appendix – Methodology and Abbreviations

    • Methodology
    • Abbreviations

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