The Tiger Awakens: blending cultural ingredients for growth

In 2014, we explored what the rise of China’s consumer market could mean for international brands—and why its scale also made it challenging to navigate. Our China–Europe comparison drew on 2,622 respondents in China and 17,606 respondents across eight European countries. These samples came from a wider Glocalities survey of more than 48,000 people in 20 countries. We used weighted survey data and standard scores to compare values across markets. Flash Report Glocalities - China & Europe.pdf

At the time, a McKinsey projection illustrated the expected shift in the make-up of Chinese urban households. The chart shows these figures:

Local understanding matters as much as market size

We found that a large and growing market does not guarantee success. Brands need to understand which consumer segments they want to reach, what they value and how their needs differ. Price is one example: consumers may want products within reach, while also associating quality and status with a higher price. Differences in income between regions make this balance more complex.

We used McDonald’s and KFC to illustrate the importance of adapting a proposition: while McDonald’s focused on its Western menu, KFC also offered traditional Chinese dishes. Garnier’s 2014 withdrawal from China illustrated a different challenge: the brand was perceived as neither affordable enough nor luxurious enough to stand out.

Work and upward mobility shape everyday priorities

Our analysis found that respondents in China placed greater emphasis on work and upward mobility. More often than Europeans, they identified with the working class and saw work as central to life. European respondents more often said cooperation leads to better results, while Chinese respondents more often valued competition and standing out.

Family, leisure and beliefs differ across markets

We found larger differences in family expectations and lifestyle. Chinese respondents more often supported the father being head of the household and believed family has a strong influence on personal choices. They also more often linked enjoyment to having earned it, and to spending money or buying something new. Europeans more often valued time to relax, including reading, gardening or doing nothing. The study also found differences in music preferences, while pop music was popular in both markets.

The analysis also challenges the assumption that Chinese consumers focus only on work or material goods. Many respondents said spirituality mattered in life. Compared with Europeans, Chinese respondents more often believed in an unchangeable fate; Europeans more often said they were open to other religions and philosophies of life.

Nescafé and Pepsi show the value of adaptation

Our analysis found that Pepsi, Nescafé and Nokia performed better in China than in Europe, while Dove and Gillette were less established. Pepsi’s local partnership with Tingyi helped it use an existing distribution network. Nescafé connected with blogger and rally driver Han Han, and used Chinese social platforms such as Weibo and Renren.

In our comparison, Chinese Nescafé consumers (n = 394) were more likely than non-consumers (n = 671) to be daring, ambitious, interested in innovation and engaged with other cultures. This profile illustrates how understanding an audience’s values can help brands shape positioning and communication for a specific market. 

How we support China market entry

Our China entry work helps organisations identify consumer segments, communicate effectively with Chinese consumers, adapt to local trends and navigate cultural differences. We can use the wider dataset to explore consumer segments, trends, brand and media use, finances, cultural values, sustainability and other background information for China, Europe and other markets.