Darren Paproski - final PhD submission.pdf - University of ...

more than 70 imported or joint venture chocolate brands in today's Chinese market (Zhang,
2010).
7.5.6 Potato Chips
In contrast to chocolate, in the potato chips category, foreign brands face dominant domestic
competitors. The favorite chips brand amongst all ethnicities was Maixiangli. The brand was
favored by 43 percent of Beijing consumers, 42 percent of Shanghai consumers, 60 percent of
Chongqing consumers, and 51 percent of Guangzhou consumers. The purchasing repertoire
among Beijing and Chongqing consumers also included another domestic brand Wang Wang.
Shanghai consumers also bought Pringles and Oishi, two foreign brands, in addition to their
overall favorite, Maixiangli. Guangzhou consumers also bought Oishi and Wang Wang as part
of their repertoire. Whereas the quality of chocolate is likely a determining factor in brand
purchase in the specialty chocolates category, the taste factor is one of the dominant factors in
the potato chips category brand selection. A recent industry survey in China revealed that the
top three factors for consumer purchase decisions of processed potato products are: taste,
price, and brand. Other factors include novel package, nutrition, advertisement, food safety,
and friends’ recommendation (Beckman et al, 2010). In recent year's Lay's brand has made
inroads into the Chinese market with the launching of new flavors such as Beijing duck,
cucumber, blueberry, and other flavors. Lay's superior distribution network, first class
packaging, and new adapted flavors may help it gain further penetration and share in this
growing market segment.
7.5.7 Perfume
The favorite perfume among all ethnicities was Chanel brand but the purchasing repertoires
were more evenly split in this category. Beijing consumers purchased Lancome, Chanel,
Christian Dior, and Estee Lauder at similar levels. Shanghai consumers favored both Chanel and
Estee Lauder evenly and also purchased numerous other brands. Chongqing consumers
purchased Chanel and Estee Lauder among many others. Guangzhou consumers' favorite
brand was Chanel and they also included Lancome and Gucci in their perfume repertoire.
Foreign brand names clearly dominated this category but unlike some of the other product
categories studied such as specialty chocolate or potato chips there was not an overwhelming
category preference but rather a desire for trying something different given the number of
brands that were purchased. It is not uncommon to see a variety of brands of perfume still in
their original packaging on display in the homes of Chinese as a kind of status symbol. This view
is supported by perfume industry experts who say "the concept of perfume is so new that a lot
of Chinese consumers are, in fact, not buying a perfume but rather the brand to which a bottle
of perfume happens to be attached" (Burr, 2008). The overall market size is considered very
small in relation to its population with the prestige fragrances market valued at US$120 million
in 2008 but is growing rapidly at between 20 and 40 percent (Burr, 2008). With this in mind it
will be quite difficult for domestic perfume producers to make inroads into this market and
particularly the high-end perfume market without major, long term investment in brand
building.
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