China and India Trends towards Western-Style Consumption
BUS 330 Principles of Marketing
Instructor Kristie Elmore
March 31, 2014
“China and India are the world’s fastest-growing major emerging markets; over the first decade of the 2000s China sustained an annual gross domestic product (GDP) growth rate of 9 percent, while India achieved 7 percent growth (Rand, 2011). With U.S. growth sluggish and Europe experiencing its own economic crisis, it is no wonder the “Asian giants” are attracting the interest of marketers.” White, S. (2012) The population growth that has occurred over the past couple decades has been dramatic not just in the U.S., but in several other ...view middle of the document...
Currently consumers in these markets seek value and are willing to spend more money on goods they believe have utility, safety and quality. In these markets value customers are shifting upscale and are ready to pay premiums for items with reliability, integrity and desirable features made of high quality components and materials. The emergence of value-oriented consumers in China is a sharp departure from the previous period when consumer purchasing decisions were based on price. Value is a crucial aspect of future marketers not only in China but we will see that in India as well. Their buying behavior and desire for quality seem to encourage companies to produce better and new products.
However, we have to look at the history of China as well here. The Chinese people have changed over the years because their culture expects to have products that provide the best value, quality, utility, integrity, desirability at the best price. China is very family oriented however tend to adhere more easily to the standards of group than people in individualistic societies. It assumes a difference as a member of one group over another group, while respecting individual standards of his group. We therefore believe that the consumption of the product of foreign origin is rather symbolic other than utilitarian to correspond to social status. Imitation is also a behavior used for identification as a member of the group. Moreover, it is obvious that luxury products are well sold in China in recent years. This means that the brand is in the process of buying decision because it meets the needs of good social status than personal needs. The Chinese have over the years changed their choices of foreign brands through the acceptance of products that provide them with genuine enthusiasm of having better quality, good reputation, greater diversity of choice, more attractive appearances and the high prices were regarded as rich and refined and at the same time socially accepted.
“The attitudes towards international brands of Chinese consumers are influenced by modern Chinese culture as well as traditional one. Specifically, modernity, youth, success and wealth allow Chinese consumers to pay greater importance to the brand, to develop a preference for foreign brands since it itself can constitute a social and symbolic universe. Modern consumers have more ways, consume more symbolically; they look for products with brand, either for their good quality or value for signs of the brand through research statute. Western Life influences consumer behavior of young Chinese. The admiration of the quality of life of developed countries exerts a positive influence on the attitude towards foreign brands.” (Lendrevie J., Lévy J. et Lindon D. (1997), The Chinese preference to foreign products seems to be an interesting feature in a society in transition to consumerism. The phenomenon of foreign brands in China appears somewhat different from what is often addressed in research in...