Communicating Quality: Marketing to China's Diverse Consumers

Cui Ping, 30, from Beijing, likes celebrity endorsements for imported products. But Yuan Rong, 28, from Xian, doesn’t.

“Celebrities are everywhere,” Rong said. “You have to see them even if you don’t want to.”

In contrast, Ping said that celebrity testimonials imply product quality. “I believe that companies that can afford expensive celebrity endorsements have real strength. To me, the more famous a celebrity is, the better the product will be because celebrities have to take care of their reputation.”

An array of marketing messages and endorsements influence consumers in China, and UPS’s survey of urban, Chinese consumers reveals new insight into some of the factors they consider when deciding whether to buy an imported product.

The survey finds that product quality is the No. 1 message to convey in advertisements for American products. More than half of consumers (56%) hope to hear messages about quality ingredients or workmanship in ads for U.S. products. Consumers surveyed particularly want to hear messages about quality for healthcare products (61%) and for fashion/apparel products (65%).

But who is the best person to endorse a product? The answer varies according to audience age and product category, according to the survey. A significantly greater number of younger consumers prefer celebrity endorsements. Almost half (46%) of consumers surveyed between the ages of 20 and 29 say they like celebrity endorsements, whereas 29% of respondents between 50 and 59 want to see celebrities in advertisements.

On the flip side, older consumers prefer professional endorsements (doctors, dentists, etc.). One-third of 50-59-year-olds say that expert endorsements are important, whereas a mere 17% of 20-29-year-olds say they want professionals to endorse products.

In advertisements for American consumer electronics and beauty products 40% and 41% respectively say they prefer “a person like me” to endorse the product. For healthcare products, 43% said that they would prefer to hear professional endorsements. Celebrity endorsements were most favored for fashion goods, with half of those surveyed saying they would like stars to advertise American apparel.

The total package

The UPS survey also reveals some distinctive preferences about packaging among urban Chinese consumers. The preferred package color for American products is blue. The percentage that prefers blue packaging for American products is 37, nearly double the next color choice (white at 19%).

“I associate the color red with American products, said Wang Na, 24, Beijing. “For example, Coca-Cola, KFC, McDonalds and Pizza Hut all have red colors in their products.”

Blue packaging also was the color of choice among almost half of respondents for products that will be given as gifts to men. Exactly 50% said that gifts for women should be in red packaging.

Other findings include:

• Younger, high-income consumers prefer American or Western-style packaging, especially for beauty products (48% of younger consumers, 46% and 45% of highest income brackets).
• In contrast, close to half of consumers aged 50-59 and lower income consumers are more likely to prefer Chinese icons on packaging.
• Young consumers like black and white packaging more than consumers of other age groups.

Differences aside, marketers need to know that what matters most is communicating quality. “As China’s market matures, it is becoming more and more like every other developed market in the world,” said Erin Ennis, Vice President, U.S.-China Business Council. “Consumers worldwide can choose products based on price, quality and service. Many Chinese consumers, especially those in urban areas, have stopped looking for the cheapest products and are now seeking the best products.”