From made in China to invented in China

While China, the Chinese and the Chinese economy continue to dominate the airwaves over the past few years, it is the emergence of Chinese brands that now grabs headlines. Take as just one example among many, the recent annual BrandZ survey produced by Millward Brown in which no less than 12 Chinese brands found themselves in the top 100 most valuable global brands and more than half of this year's newcomers were Chinese brands.

Over the next few years, we will witness the rapid emergence and increasing strength of Chinese brands on the world stage. These Chinese brands will come from a wide variety of industries, including clothing (such as MetersBonWe and VANCL), banking (such as Bank of China) and computers (such as Lenovo).

Consumer behavior

We must never forget that consumers drive brand performance, nothing else. Chinese consumers are changing and it is Chinese companies that are best placed to take advantage of this over the long term.

While many Chinese brands dominate their domestic market, from computers (Lenovo) and household appliances (Haier) to sport and fashion brands (Li-Ning, MetersBonWe, VANCL), there are major changes taking place within Chinese society that will continue to influence brand consumption. Some of the most important changes in Chinese consumerism are:

Chinese consumers value hedonic shopping more than their Western counterparts: Perhaps this is because shopping as a leisure activity is still relatively new for the Chinese.

Chinese consumers value social interaction when shopping. Aspects of traditional Chinese culture remain firmly rooted deep within even the youngest, most modern Chinese consumers. Perhaps this is why the shopping experience has become a major opportunity for maintaining and even finding friendship. Some of my recent research findings even suggest that Chinese shoppers view the shopping trip as an opportunity to "gain face". They value any praise or compliments received, and not just by their friends but also by shop assistants.

Chinese consumers value product and in-store interaction more. Chinese shoppers appreciate the importance of "touch" and "feel" when sampling possible purchases. Trust is a huge issue in China, one reason why well-known brands do so well and Chinese consumers are so brand conscious.

Chinese consumers value social status. This is most firmly rooted in Chinese history. Status, authority and power are perhaps the main drivers behind most Chinese consumer behavior. Shopping trips, therefore, are often the result of the need to increase social status with the purchase of what are to considered to be prestigious, exclusive brands.