November 8th 2007 – In 2009, China’s fast-growing market research industry will have grown by as much as 70% from its 2006 annual value of US$600 million* to become worth more than US$1 billion. By around 2012, China will overtake Japan and will be the world’s 5th largest market for market research.
These two key predictions were made today by Tony Cowling, President of TNS and President of Gallup International Association, at the China Europe Business Meeting Frankfurt, where top business leaders from Europe and China are exploring current and future relationships.
During the last 5 years, money spent with market research agencies in China has doubled, and over the past 10 years it has quadrupled with China’s market research industry today worth US$600 million.
“A country which did virtually no commercial research 15 years ago is now in 8th place globally, and at current growth rates (nearly 25% absolute and 17% net of inflation), has already overtaken Spain and will pass Italy in 2008 to become 6th largest in the world,” said Mr Cowling.
“It is realistic to expect market research to show 15% to 20% real growth in the next five years, and certainly double-digit real growth for the next 10 years.”
Even when China eclipses Japan, there will still be significant room for growth based on annual market research spend per capita. While China will then be the second largest market in the world for advertising, China’s annual market research per capita will stand at US$3 in 2012, against the US$30 that will be seen for the US and Germany, and nearly US$40 in France and the UK.
For many years, western global brands drove demand for market research but Tony Cowling said this has changed.
“Over the past three or four years, the volume of market research generated by Chinese companies has been growing much faster than the multinational spend. China’s leading market research agencies are finding that the volume of business they receive from Chinese companies is approaching 50% of turnover. Our partner in China for continuous and syndicated business – CTR Market Research – is certainly seeing more rapid growth on the Chinese side of its business.”
Tony Cowling emphasised the future importance of China’s ‘local’ agencies, especially given the growing importance of China’s 2nd tier and 3rd tier cities.
“As is well known, development in China is happening in many centres simultaneously. In the 2nd tier and 3rd tier cities, the domestic Chinese market research companies are at an advantage owing to their local knowledge, unique culture, and the difficulties western global brands have in extending distribution networks and targeting the right consumers.”
Tony Cowling completed his speech in Frankfurt by saying that, looking ahead five years or more, market research agencies in Europe can expect more business coming out of China’s borders – in the same way that countries such as Japan and the United States have always been big buyers of research in Europe.
“Currently, the bulk of Chinese exports are not ‘China branded’ – they are components or semi-produced items, or ‘made to order’ products for Western branding. But through our own consumer panels and media measurement panels, we have many examples of the recent growth and strength of Chinese brands. As Chinese companies start to look overseas for higher sales and greater brand share, they will come to Europe and the United States. This will be good for the big market research agencies who have already built up relationships with these companies in China. The big agencies in London, Paris, Berlin and New York will be required to help China’s brands understand Europe and the United States, and successfully market and advertise their way into western markets.”
* Source:ESOMAR.
About TNS in China:
TNS is active in China both through the wholly-owned business known as TNS China, and through two joint ventures: CSM Media Research and CTR Market Research.
TNS China
In business since 1992, TNSis one of the first international market research agencies to start operations in China. In recent years, TNS has grown substantially and established itself as one of the most successful and reputed market research and consulting agencies in China, with 150 professional researchers and more than 300 employees in three full service offices in Shanghai, Beijing and Guangzhou. TNS China focuses on the Consumer, Automotive, Healthcare, Finance and Technology sectors.http://www.tns-global.com.cn/
CSM Media Research
Dedicated to TV & radio audience measurement (TAM) research, CSM Media Research offers reliable and uninterrupted rating information for China and the Hong Kong SAR. As the “currency” of the TV, radio broadcasting & advertising trade, CSM Media Research operates the world's largest TV and radio audience measurement panel, covering the 1.2 billion people in China who have access to TV and/or radio (including the Hong Kong SAR’s 6.5 million TV viewers). http://www.csm.com.cn/
CTR Market Research
CTR Market Research is one of the leading market research companies in China. Specialist expertise includes Consumer Panel, Customized Research, Media & Brand Research, Media Strategy Research and Media Intelligence. http://www.ctrchina.cn/
About TNS
TNS is a global market insight and information group.
Our strategic goal is to be recognised as the global leader in delivering value-added information and insights that help our clients to make more effective decisions.
As industry thought leaders, our people deliver innovative thinking and excellent service to global organisations and local clients worldwide. We work in partnership with our clients, meeting their needs for high-quality information, analysis and foresight across our network of over 70 countries.
We are the world’s foremost provider of custom research and analysis, combining in-depth industry sector understanding with world-class expertise in the areas of Retail and Shopper Insights, Stakeholder Management, New Product Development, and Brand and Communications. We are a major supplier of consumer panel, media intelligence and internet, TV and radio audience measurement services.
TNS is the sixth sense of business.
www.tnsglobal.com
