VALUE PROPOSITIONS DRAW CONSUMERS WILLING TO PAY PREMIUM FOR QUALITY
The personal care category rose 61 percent in value in the BrandZ Top 100 Most Valuable Chinese Brands 2016, following a modest rise in 2015. Driven in part by the addition of another brand, Herborist, which joins Dabao and Zhong Hua in the ranking, the sharp rise in category value also reflects several consumer trends.
Despite slower economic growth and stock market fluctuations, Chinese consumers have not modified their spending on necessities, according to BrandZ research. And the shopping attitudes and behavior of Chinese consumers are changing, a ecting what they buy and how much they spend.
Kantar Worldpanel found that consumers are putting fewer fast moving consumer goods into their baskets on each shopping trip, but spending more per item. Kantar Wordpanel also discovered that personal care is one of the categories in which Chinese consumers will pay a premium for items related to improved health or quality of life, such as skin care or toothpaste.
Herborist is a skin care brand whose products are made from natural ingredients. Influenced by traditional Chinese medicine, the brand updates Chinese ancient knowledge of herbal treatments with modern technology and marketing. Herborist illustrates the possibility of building a uniquely Chinese global brand. Sold online, Herborist is also available in physical stores in many European countries, primarily through the German retailer Douglas, and Sephora, the French-owned cosmetics chain.
Dabao, the well-established and widely distributed skincare brand, has been reenergized with new packaging that emphasizes the brand’s moisturizing and hydration qualities. The US healthcare company Johnson & Johnson purchased Dabao in 2008. Similarly, Chinese consumers have used Zhong Hua toothpaste for over half a century. To reconnect with customers and connect with younger consumers, the brand built an integrated media campaign around persuading people to smile.
The campaign featured a leading Chinese actress in a video challenging people to smile, despite all the stress in their lives. It included out-of-home ads on 1,600 newspaper kiosks, as well as a social media component linked with social responsibility. Zhong Hua is part of the Unilever oral care brand portfolio.