Tuesday, July 30, 2013

Chinese consumers don't trust "made in China" products

A main difference between China in 2007 and today is...
the explosion of imported products.

You observe this everywhere:
  • Franchised shops such as 7 eleven. These shops established all over China. They offer a large choice of imported products. 

What imported products Chinese customers want?
Imported products are expensive.
Chinese customers check their expenses and will pay more for some products: for children, for health, luxury.
For instance:
Olive oil
Biscuits, sweets
Education material
Luxury cars
Luxury clothes, bags

Why Chinese consumers don't trust "made in China" anymore?
"Made in China" has never been a synonym of quality but with the successive food scandals Chinese consumers lost trust in "made in China" products.
Contaminated  milk with melanine, contaminated rice with cadmium, Bottle water Nongfu Spring scandal, Yogourt and iced cream made with impure milk...

The problem is due to the lack of control in the food industry.
It is difficult to check the origin of products and the production steps. Following the scandals, the Chinese government tries to impliment some control but corruption at all level makes it almost impossible.

China needs to  create some trustworthy Chinese quality, origins label. But it seems to be an impossible task. You should better pay producers, control regularly. You should control all the fabrication process at each step, you should educate and moralize.

For now producers would rather use foreign labels: 

Today you need decades before Chinese consumers trust again "made in China" products.

Chinese brand strategy: produce abroad!
Instead of adressing this complex issue, Chinese brands choose to offer themselves foreign products to their customers!
For customers who don't have money: "made in China" products
For wealthy customers: Chinese products produced abroad...
For instance, Wahaha established in France to produce french milk, many Chinese groups buy back some wine domains in France...