Consumers still want the Good Life

Hong Kong - Although consumers across Greater China seek more value in response to the financial crisis, 70% of respondents refuse to move to cheaper brands, according to a study by Publicis.

"The most prominent finding that emerged in all markets is the intense desire to keep up with the Good Life- now and in the future- and not to cut back on favourite brands," Laurie Kwong (pictured), CEO for Publicis Greater China said.

She added brand loyalty is more than a financial decision and consumers in Greater China are not eager to define themselves a 'cheaper me'. This means before trading down to cheaper brands, consumers claim they will rather shop around more or wait for discounts and promotions.

The study revealed between 5 to 10% of respondents intend to cut stays at 5 star hotels, fine dining and buy luxury fashion in the next 12 months but between 20 to 25% intend to cut back on everyday products and services such as informal eating out, in-home entertainment and personal care items.

The study has identified four shopper types -business as usual high-enders, cautious regulars, ultimate cutters and ultimate indulgers- in relation to over 20 product categories ranging from luxury, beauty, consumer electronics to in-home entertainment and travel.

During her presentation, Kwong said this particular economic crisis from the unexpectedness and speed at which it happened, the global scale and domino effect have taught the consumers several lessons especially "a shattering myth that the West is the model to follow".

She said while the desire to keep living the Good Life is still an aspiration, there will be a reaffirmation of Chinese cultural values like financial prudence, emphasis on family and community and a modest approach to consumption.

"For marketers, this means businesses and brands will need to acknowledge and adapt to a consumer mindset that reflects a renewed emphasis on and application of these values," Kwong said.

The research findings is a multi-city study conducted in Mainland China, Taiwan and Hong Kong between December 2008 and March 2009 from a sample size of more than 1,500 consumers to examine how consumers react to the current economic challenge as well as the long-term effects.

In addition to the study, Publicis will launch a mini-site called Rise Beyond to create a platform for brands and consumers to connect directly.