The Importance of Brands in Technology - China - June 2016


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Chinese consumers are willing to pay premium prices for the technology brands they like. Constantly communicating innovation, setting up brick-and-mortar stores, engaging fans and users with marketing events as well as being socially responsible can help brands to foster popularity among Chinese consumers.

Table of Content

Overview

What you need to know
Products covered in this report
Personal computer (PC)
Mobile phone
Television (TV)
Camera
Gaming console
Wearable digital products
Demographic classification
Household income
Personal income

Executive Summary

Market trends
Expenditure on technology and communication grows steadily
Figure 1: Consumer expenditure, by sector, 2015
Struggling smartphone markets
Companies and brands
Key players
Competitive strategies
Innovation highlights
The consumer
Fiercely competitive technology market
Figure 2: Awareness and usage of leading technology brands, March 2016
Apple is the most liked technology product brand, while Samsung and Huawei vie for next place
Figure 3: Favourite technology product brands, March 2016
Figure 4: Reasons for favouring technology product brands, by brands, March 2016
‘BAT’ are the most liked internet companies
Figure 5: Favourite internet service brands, March 2016
Being user friendly essential for internet service brands
Leading brands show differentiating competitive advantages
Figure 6: Reasons for favouring internet service brands, by brands, March 2016
Most consumers are potential loyal consumers of technology brands
Offering holistic ecosystem can help drive loyalty
Figure 7: Attitudes towards technology brands, March 2016
Offering promotions for existing users to attract future purchase
Figure 8: Attitudes towards technology brands, continued, March 2016
What we think

Issues and Insights

The importance of brands in technology purchase
The facts
The implications
Building up word-of-mouth reputation
The facts
The implications
Attracting fans among affluent users
The facts
The implications

The Market – What You Need to Know

Expenditure on technology and communication grows steadily
Smartphone markets struggling after years of strong growth
State policies and consumers’ interest drive market growth

Market Trends

Expenditure on technology and communication grows steadily
Figure 9: Consumer expenditure, by sector, 2015
Figure 10: Chinese technology and communication expenditure and growth, 2011- 2015
Struggling smartphone markets after years of strong growth
Figure 11: Smartphone total volume sales and growth in China, 2011- 2015
State policies and consumers’ enthusiasm drive market growth

Companies and Brands – What You Need to Know

International players’ latest developments
Domestic players’ latest developments
Technology product brands building up holistic ecosystems
Internet service brands leverage power of VR, festival marketing and develop online financial services
Experience stores help establish brand image and display products
Smart devices applied in more areas
Being moral

Key Players

International players
Apple Inc.
Samsung Group
Microsoft Corporation
Google
Amazon.com, Inc.
Domestic players
Baidu, Inc.
Alibaba Group
Tencent Holding Limited
Huawei Technologies Co. Ltd.
Xiaomi Inc.

Competitive Strategies

Building holistic ecosystems
Leveraging the power of VR
Holiday marketing
Online financial services become essential for internet service brands

Who’s Innovating?

Experience stores help establish brand image and display products
Huawei’s first experience store in Tokyo, Japan
DJI’s store in Shenzhen to introduce drones
Casio opens experience store for Exilim digital cameras
Figure 12: Casio brick-and-mortar store, K11 Shopping Mall, Shanghai, May 2015
Smart devices applied in more areas
Smart watches for children
Smart pet feeders
Figure 13: FeedPeek smart pet feeders, at the Consumer Electronics Show Asia, May 2016
The ONE smart piano
Figure 14: The ONE Smart Piano Classroom, at the Consumer Electronics Show Asia, May 2016
Being moral
Apple going green
WeChat to the rescue

The Consumer – What You Need to Know

Fiercely competitive technology market
‘BAT’ continues to dominate the market, while Apple and Huawei gain popularity in tier one cities
Leading technology brands face challenge from lapsed users as well as attracting trial
Apple is the most liked technology product brand, while Samsung and Huawei vie for next place
Product quality is the most important reason for preferring technology product brands
‘BAT’ are the most liked internet companies
Being user friendly is essential for internet service brands
Most consumers are potential loyal consumers of technology brands
Innovative functions may drive consumers to switch brands
Innovation can draw consumers’ interests in brands
Optimistic outlook for paid internet services

Awareness and Usage of Technology Brands

Fiercely competitive technology market
Figure 15: Awareness and usage of leading technology brands, March 2016
The drop in usage implies a more fragmented market
‘BAT’ continue to dominate the market
Apple and Huawei gain popularity in tier one cities
Figure 16: Users of leading technology brands in tier one cities, March 2016 and July 2014
Samsung, Sony, Lenovo and Google face lapse in users
Figure 17: Lapsed users of leading technology brands, March 2016
Xiaomi, Amazon, Sony and Huawei need to attract trial
Xiaomi can use differentiate approaches to appeal to different demographic groups
Huawei on the way to consolidating brand identity
Amazon needs to attract more male consumers
Sony should continue offering high quality products
Figure 18: Non-users of leading technology brands, March 2016

Favourite Technology Product Brands

Apple is the most liked technology product brand
Samsung and Huawei compete closely
Figure 19: Favourite technology product brands, March 2016
International technology brands enjoy higher popularity
Domestic brands appeal to young consumers
Large minority of consumers in their 40s do not have favourite technology product brands
Figure 20: Favourite technology product brands, by demographics, March 2016

Reasons for Favouring Technology Product Brands

Product quality is essential to develop fans
Figure 21: Reasons for favouring technology product brands, March 2016
Leading technology product brands demonstrate various appealing features
Figure 22: Reasons for favouring technology product brands, by brands, March 2016

Favourite Internet Service Brands

‘BAT’ are the most liked internet companies
Older consumers and those with lower income care less about internet service brands
Figure 23: Favourite internet service brands, March 2016
Baidu is more popular among young consumers
Tencent and Alibaba enjoy popularity across different demographics
Offering business solutions drives favourability for Microsoft and Google
Figure 24: Favourite internet service brands, by demographics, March 2016

Reasons for Favouring Internet Service Brands

Being user friendly is essential for internet service brands
Figure 25: Reasons for favouring internet service brands, March 2016
Baidu well performs in offering free services
Tencent is well recognised for its mobile services
Alibaba outperforms in terms of variety of services
Microsoft enjoys good word-of-mouth reputation
Sina should establish competitive advantage as information source
Google outperforms in being socially responsible
Figure 26: Reasons for favouring internet service brands, by brands, March 2016

Attitudes towards Technology Brands

Most consumers are potential loyal consumers of technology brands
Innovation is important to promote premium prices
Offering a holistic ecosystem can help drive loyalty
Consumers want technology brands to reflect social status
Figure 27: Attitudes towards technology brands, March 2016
Innovative functions may drive consumers to switch brands
Consumers in their 30s and 40s care more about functions
Figure 28: Attitudes towards technology brands, continued, March 2016
Innovation can draw consumer interest in brands
Figure 29: Attitudes towards technology brands, continued, March 2016
Offering promotions for existing users to attract future purchase
Optimistic outlook for paid internet services
Figure 30: Attitudes towards technology brands, continued, March 2016

Meet the Mintropolitans

Mintropolitans prefer international brands
Figure 31: Favourite technology product brands, by consumer classification, March 2016
When it comes to tech brands having trustworthy leaders appeals more to Mintropolitans
Figure 32: Reasons for favouring technology product brands, by consumer classification, March 2016
Mintropolitans are less price sensitive about internet services
Figure 33: Attitudes towards technology brands, by consumer classification, March 2016

Appendix – Methodology and Abbreviations

Methodology
Mintropolitans
Why Mintropolitans?
Abbreviations

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