From cars to credit cards, toothpaste to tablets, flights to fruit, almost nine in ten Chinese shoppers now research products before buying them according to new global study from TNS
1 December 2015 - Data released today highlights the lengths consumers are going to find the brand, bargain or product they want, and the challenge that poses to retailers. According to Connected Life, a study of over 60,000 connected consumers across 50 countries from global research consultancy TNS, Chinese consumers are some of the smartest shoppers globally, with nearly nine in ten (88%) carrying out some form of research before making a purchase, compared to 84% worldwide.
Chinese shoppers are equally likely to do pre-purchase research offline (72%) than online (70%), holding stores and screens in equal regard when trying to find the brand, bargain or product they want, unlike many other countries where either offline or online research dominate. The data shows little difference in the amount of pre-purchase research by age group in China: 16-24 year olds consult approximately four (3.7) pieces of information pre-purchase, compared to 3.5 sources for those aged 55-65.
It’s not just big ticket items like cars, flights, technology, holidays and financial services products consumers seek information on – it’s also cheaper everyday essentials such as shower gel, cosmetics, diapers and pet food. The majority of Chinese shoppers now adopt the considered, pre-planned approach previously reserved for high-ticket items, to buying lower-priced, regular shopping basket staples. Over eight in ten (84%) shoppers say they do pre-purchase research for personal care products such as skincare, perfume and cosmetics, 87% for baby care products and 82% for hygiene items such as deodorant and shower gel.
On the challenge this poses retailers, Grace Liu, CEO TNS China, says:“Thanks to the explosion of connected devices in China over the past few years, it’s never been easier to research products wherever you are. Chinese consumers are natural bargain-hunters who will go through multiple different research channels to ensure they have found the best deal or the brand most suited to their tastes. Interestingly, offline methods such as an in-store or word of mouth are still just as powerful in influencing purchase decisions, so brands need to ensure they have a watertight Omni channel strategy and don’t just focus on how to engage consumers online.”
Brand equity counts. Over half of Chinese consumers make their purchase decisions before they shop
Whether researching offline or online, the study reveals that 51% of shoppers globally make up their mind about the exact brand to buy before they shop. In China, a similar proportion (52%) of “Decided” shoppers kept to their plan and purchased that exact brand. Only 14% were ‘disrupted’ while shopping, ultimately buying a different brand. This means we may see a decline in impulse shopping in-store. Consumers now know what they want, and are less susceptible to in-store deals.
Grace continues: “Building brand equity is key, and the best way to win with these shoppers is help them find what they are looking for quickly: a good experience with the brand online or offline will lead to repeats in the future. The majority of shoppers start their mission with a good idea of the brand they intend to purchase. Brand and sales teams need to work together to win: brand teams increase the share of shoppers decided on the brand, and sales teams closes the deal at the point of sale. There is still opportunity to influence shoppers to change their mind: over a third (35%) of Chinese consumers are open to brand choice when they start shopping. Relevant offers and incentives delivered at the right time – whether online or in-store – are crucial in winning over undecided shoppers as well as stimulating impulse buying.”
Understanding shopper mindsets is key to encouraging disruption
While many Chinese shoppers reach stores with a pre-researched decision to buy a particular brand, TNS’ Connected Life research shows there is still appetite for new products. So-called ‘Exploratory’ buyers want to explore products available that meet their needs. This mindset presents a real opportunity for brands, particularly in FMCG and other low involvement product categories, which are increasingly commoditised. Shoppers with this type of mindset are easiest to influence, most likely to research online and are the highest spenders, and are prevalent in certain categories such as personal care (28%).
Grace concludes: “As consumers worldwide adopt a more considered approach to their purchases, brand owners and retailers can provide the information – and incentives - they need to make up their minds. This means they must stop thinking in terms of advertisements and start becoming content providers that offer relevant information and offers at every stage of the shopper journey. To be successful, brands, retailers and manufacturers need a deep understanding of how and where people research purchases to ensure the right kind of information is in the right place at the right time.”
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Notes to editors
About Connected Life
Connected Life is a leading global study of the digital attitudes and behaviours of 60,500 internet users across 50 countries, exploring how technology is transforming the lives of consumers across the world. It offers essential insight into the impact of the growing digital ecosystem on the media landscape.
Connected Life also uncovers new and exciting opportunities for marketers to connect with their consumers in this increasingly complex environment; it is a powerful tool that helps brands make better digital decisions.
The fieldwork was undertaken in all markets between May and August 2015.
For further information, visit http://www.tnsglobal.com/connectedlife
TNS advises clients on specific growth strategies around new market entry, innovation, brand switching and customer strategies, based on long-established expertise and market-leading solutions. With a presence in over 80 countries, TNS has more conversations with the world’s consumers than anyone else and understands individual human behaviours and attitudes across every cultural, economic and political region of the world.
TNS is part of Kantar, the data investment management division of WPP and one of the world's largest insight, information and consultancy groups. Please visit www.tnsglobal.com for more information.
Kantar is the data investment management arm of WPP and one of the world's largest insight, information and consultancy groups. By uniting the diverse talents of its 12 specialist companies, the group is the pre-eminent provider of compelling data and inspirational insights for the global business community. Its 30,000 employees work across 100 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at every point of the consumer cycle. The group’s services are employed by over half of the Fortune Top 500 companies. For further information, please visit us at www.kantar.com