Conducting online research in China is unlike anywhere else in the world.

With over 1.1 billion internet users in 2024, China accounts for over a fifth of the global online population. Nearly all of them, over 99%, access the internet via smartphones, making mobile-first behavior not just common but standard.

Researchers won’t find Google, Facebook, or YouTube. The Great Firewall blocks these platforms. Domestic giants like Baidu, WeChat, and Tmall stand in their place, which dominate search, social interaction, and e-commerce across every tier of Chinese society.

China’s digital economy is expanding with both speed and scale. According to the China Academy of Information and Communications Technology, it reached ¥50.2 trillion in 2024, accounting for nearly 40% of the country’s GDP. That growth has produced a tightly regulated, platform-driven ecosystem where almost every transaction and interaction is digitally mediated, and often monitored.

The implications for research professionals and brands entering China are clear: global tools and templates rarely apply. Access, compliance, and engagement strategies must be localized, legally sound, and platform-specific.

Understanding the Market Research Landscape in China

At first glance, China may appear to be a single, unified market. But researchers who’ve worked on the ground know better. The country’s vast geography, regional economic disparities, and fast-evolving digital behavior make it anything but monolithic.

One of the first challenges is the platform disconnect. Western tools and social platforms – standard in global research workflows – are largely inaccessible. Google Surveys, Meta’s ad platform, YouTube analytics, and even SurveyMonkey links can break or be blocked entirely. Instead, insights must be gathered through domestic platforms such as Wenjuanxing for surveys, WeChat for micro-panels and intercepts, or Douyin and Xiaohongshu for digital ethnography.

Understanding consumer behavior within these ecosystems requires fluency in China’s unwritten rules of digital life. These include the importance of influencer-led recommendations, the use of e-wallets and super apps, and the power of social commerce, where shopping is often embedded within live streams or chat threads. Research here doesn’t just measure attitudes or preferences; it often captures behavior in real time.

Then there are the legal and regulatory dynamics. China’s Personal Information Protection Law (PIPL), which came into effect in 2021, mirrors aspects of Europe’s GDPR but with stricter localization mandates. Researchers must store data onshore, obtain clear consent, and ensure complete transparency with respondents. Foreign firms conducting surveys without a local license risk heavy penalties or blocks.

Internet access itself is stratified. While national penetration hit over 76% in 2024, rural provinces and lower-tier cities still lag, especially in terms of speed, access to modern platforms, and digital literacy per CNNIC. A panel that works in Shenzhen might fail in Gansu.

In short, market research in China exists at the intersection of tight state oversight, massive digital adoption, and deeply localized behaviors. Without accounting for these dynamics, even well-funded research efforts can fall short, sometimes without realizing it.

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Define Your Research Objectives and Localize Your Strategy

No matter how sophisticated the tools or how generous the budget, market research in China will fail if the objectives aren’t adapted to local realities. This is where many global teams stumble – by applying Western assumptions to an entirely different cultural and regulatory framework.

Consumer segmentation in China can’t rely on income bands or generational labels alone. Social status is fluid, regional identities matter, and values shift across provinces. A tier-2 city in the East may be more digitally mature than a tier-1 city in the interior. Brands that define their target groups too narrowly or generically risk missing how identity and aspiration play out in Chinese daily life.

Consumer behavior also looks different in a tightly surveilled digital space. Chinese consumers are more likely to self-censor, avoid specific topics, or express preferences indirectly. Questions that may seem standard in a US or UK survey about media consumption, personal values, or financial habits can backfire if not rephrased to account for local sensitivities. Cultural fluency matters not just in translation but also in tone, structure, and framing.

Even the method of recruitment can alter the reliability of insights. Research respondents in China tend to give more socially desirable answers, especially in group settings. This is rooted in the concept of “face” (mianzi), a powerful social dynamic that influences behavior in personal and public spheres. Without careful design, your questionnaire might gather politeness rather than truth.

A one-size-fits-all approach to research design is also problematic due to China’s vast geographic and economic divides. What resonates in Shanghai may fall flat in Chongqing, and what succeeds in digital-first Guangdong may underperform in slower-moving provincial markets.

Before any fieldwork begins, market research teams must:

  • Clarify objectives in the context of China’s regulatory environment
  • Rework segmentation models to include region, tier classification, and platform usage
  • Pilot test surveys or interview guides to flag misinterpretations or mistrust
  • Prepare for multiple iterations: localization is not a one-time edit

The most effective market research in China begins not with a script but with a reset. It discards assumptions and designs from the ground up, aligned to local behaviors, restrictions, and opportunities.

Choose the Right Market Research Methodologies

Choosing the correct market research methodology in China is a matter of access. With international research tools restricted or blocked, researchers must turn to local platforms, re-engineered workflows, and culturally calibrated approaches that work within China’s digital ecosystem.

Quantitative Research: Mobile, Embedded, and Localized

Online surveys remain a cornerstone of quantitative research, but success depends on domestic platforms. Tools like Wenjuanxing and Sojump are popular alternatives to SurveyMonkey and Qualtrics, offering full integration with WeChat, where Chinese consumers already live, shop, and communicate.

Incentives also look different. Instead of email vouchers, respondents are more likely to engage when rewards are offered via WeChat Pay or Alipay, and when surveys are designed for mobile-first navigation, short, vertical, and touch-friendly.

Researchers should also be cautious about using standard Likert scales or Western question phrasing. Translation is rarely enough. Questions like “How strongly do you agree with this statement?” may confuse or alienate respondents unfamiliar with abstract rating formats. Instead, behavioral prompts (“What do you usually do when…?”) often yield more honest responses.

Qualitative Research: The Art of Listening Between the Lines

Focus groups, in-depth interviews, and ethnographic research still play a vital role in understanding Chinese consumers, but they require cultural dexterity. Participants may hesitate to share candid opinions in a group setting, especially if their answers could be seen as disloyal, impolite, or out of sync with others.

Skilled moderators trained in local dialects and non-verbal cues are essential. Many Chinese respondents may not openly contradict a brand or state dissatisfaction directly. What’s left unsaid, or said in euphemisms, can be just as meaningful as what’s spoken.

In rural areas and lower-tier cities, face-to-face intercept interviews or home visits may be more effective than digital channels, especially among older demographics with limited app literacy.

Example: A global FMCG brand could run taste tests for new snacks in Shanghai and Chengdu. While Shanghai participants might discuss flavor in marketing terms, Chengdu participants may reference family traditions and mealtime rituals. Both data sets will be valuable, but wildly different in tone and framing.

Platform-Based Research: Where Behavior Happens

Increasingly, behavior-based research on Chinese platforms is replacing self-reported data. Tools for social listening on Xiaohongshu, Douyin, and Weibo allow brands to track organic conversations, reviews, and influencer interactions in real time. This method offers rich, unfiltered insights only if researchers understand local slang, memes, and the fast-moving social codes that govern engagement.

Leveraging Live-Streaming and Digital Ethnography

An emerging trend in Chinese market research is the use of live-streaming interviews and digital ethnography. Researchers engage with participants through live video sessions, often via mobile screen sharing, to observe real-time decision-making processes during online shopping experiences. This approach provides insights into how consumers interact with algorithms, peer reviews, and promotional incentives.

Platforms like Douyin (the Chinese version of TikTok) and Kuaishou have popularized live-streaming commerce, where influencers showcase products and interact with viewers in real-time. Brands have adopted similar strategies for research purposes, allowing them to observe authentic consumer behaviors in natural settings.

For instance, during a live-streamed shopping session, a participant might discuss their thought process while choosing between products, revealing factors such as brand perception, price sensitivity, and the influence of peer recommendations. This method offers a richer, more nuanced understanding of consumer behavior compared to traditional surveys.

Recruit the Right Respondents

Getting the methodology right means little if the respondents don’t reflect the realities of China’s diverse consumer base. With a population that spans rural to hyper-urban, Gen Z to retirees, and everything in between, recruitment is one of the most critical and misunderstood steps in the research process.

Many international brands default to panels based in tier-1 cities like Beijing, Shanghai, or Shenzhen. While these metros offer easy access to digitally fluent, affluent consumers, they represent only a fraction of the Chinese population. Insights gathered here can skew overly optimistic or trend-forward, failing to reflect the slower adoption curves, different aspirations, and practical constraints of consumers in tier-2, 3, and 4 cities.

City-tier segmentation is often a more useful starting point than income or age alone. Lower-tier cities are home to emerging middle-class consumers with different brand loyalties, risk tolerances, and shopping rhythms. Mobile access may be high, but digital behavior often centers on group chats, community influencers, or price-comparison apps rather than impulse buys or brand storytelling.

Trust is another factor. Chinese respondents are often skeptical of unfamiliar research invitations, especially those that appear to come from foreign entities. Privacy concerns are amplified by growing public awareness of surveillance and data misuse. Clear disclosures, local branding, and appropriate incentives – preferably distributed via WeChat Pay or Alipay – go a long way in building credibility.

Here’s a simplified framework for how to think about respondent targeting:

City TierKey TraitsBest-Suited Research Methods
Tier 1Digitally native, trend-sensitiveApp-based surveys, UX testing, livestream ethnography
Tier 2Aspirational, price-consciousMobile ethnography, moderated interviews
Tier 3–4Family-driven, value-orientedIn-person intercepts, voice-recorded diaries, local moderators

Recruitment also needs to reflect linguistic diversity. Mandarin may be the official language, but dialects like Cantonese, Shanghainese, or Hokkien dominate in certain regions, affecting not just how people speak but also how they think and respond. Ignoring these subtleties risks diluting the quality of the insights.

The goal isn’t just to find willing respondents. It’s to find the right mix of voices that reflect the layers of China’s consumer landscape – urban and rural, old and young, first-time buyers and category loyalists. That mix is what separates data from insight.

Choose the Right Local Partners

Conducting market research in China without the right local partner is like trying to navigate Beijing without a map or a VPN. Between strict data laws, platform-specific tools, and regional business norms, partnerships aren’t optional. They’re foundational.

Under China’s Personal Information Protection Law (PIPL) and related cybersecurity regulations, foreign companies conducting market research must work with licensed local entities. These partners ensure compliance with data localization rules, obtain the necessary permissions, and help navigate issues like respondent consent and secure data storage. Violating these protocols, even unintentionally, can result in blocked surveys, unusable data, or regulatory penalties.

But regulatory compliance is only part of the equation. The best local partners act as cultural interpreters, not just fieldwork executors. They know which platforms work in different regions. They can flag when a question falls flat or a concept may trigger political sensitivity. They often have pre-established panels or community connections that speed up recruitment without cutting corners.

Key traits to look for in a local research partner in China:

  • Transparency in methodology, recruitment, and sample quality.
  • Proven experience in your industry or category.
  • Strong digital capabilities, including mobile-first survey design and platform integration.
  • Multilingual moderation, especially for qualitative projects in regional markets.
  • Regulatory fluency, with up-to-date understanding of evolving compliance requirements.

Let’s say a global home appliance brand selected a local agency based solely on cost. Midway through the project, the agency ran unlicensed online surveys, resulting in platform shutdowns and a complete loss of data. The brand had to restart fieldwork, this time with a vetted partner, which cost both time and credibility.

In China, partnerships are not transactional; they’re relational. A good local agency won’t just execute your brief; they’ll help shape it, localize it, and protect it from avoidable missteps.

Analyze the Data with Local Context in Mind

Collecting data in China is only half the challenge. The other half, often overlooked by global teams, is interpreting that data through the right cultural and behavioral lens. Without context, even clean, well-structured datasets can lead to misleading conclusions.

Start with the basics: consumer expression in China is nuanced. Respondents often avoid direct disagreement or criticism, especially in group settings or formal interviews. This isn’t dishonesty; it’s cultural etiquette. The concept of “saving face” (mianzi) shapes how people share opinions, particularly when discussing sensitive topics like personal finances, government policy, or dissatisfaction with brands. What’s unsaid, or expressed obliquely, can carry more weight than a direct answer.

Quantitative surveys can be similarly distorted if global benchmarks are applied too rigidly. A net promoter score (NPS), for example, may skew artificially high or low depending on how Chinese respondents interpret the scale. A score of 7 might indicate strong satisfaction, not neutrality, because many respondents avoid giving top marks unless truly exceptional service is perceived. Translating scales, expectations, and phrasing without local validation risks entirely misreading consumer sentiment.

Researchers must also consider regional variability. An insight that holds in Hangzhou may fall apart in Harbin. Differences in spending power, brand exposure, education levels, and even platform usage create subtle but significant variations in interpretation. Treating China as a single market often results in data that’s technically correct but strategically useless.

Then there’s the issue of behavioral versus stated preferences. In tightly moderated environments like China’s internet, what consumers do often diverges from what they say. That’s why qualitative research, social listening, and mobile ethnography are vital complements to surveys. They surface the emotional and contextual drivers behind the numbers.

Finally, data storytelling matters. Stakeholders unfamiliar with the Chinese market need more than graphs; they need contextual framing. This might mean pairing survey results with platform usage maps, using participant quotes alongside heatmaps, or explaining why certain choices align with cultural norms.

In China, insight isn’t just about patterns. It’s about perspective.

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Key Challenges to Be Aware Of

Conducting market research in China means navigating a minefield of legal, logistical, and cultural complexities. Even seasoned researchers can fall short if they overlook the structural challenges that shape the Chinese research environment.

Strict Data Privacy and Cybersecurity Laws

China’s Personal Information Protection Law (PIPL) and Data Security Law impose strict controls on how data is collected, stored, and transferred. Unlike GDPR, which focuses on user consent, PIPL emphasizes data sovereignty, requiring that data collected in China remain within its borders unless specific conditions are met. Cross-border data transfers require government approval and justification.

Cloud storage, survey platforms, and even incentives must comply. A foreign survey tool hosted outside China may be inaccessible or illegal. Researchers must use licensed, in-country platforms and work with authorized local partners to ensure compliance.

The Great Firewall and Platform Restrictions

China’s internet infrastructure is isolated from the global web. Platforms like Google, Facebook, Instagram, YouTube, and even some international survey tools are blocked. Researchers relying on these defaults will see broken links, incomplete responses, or zero reach.

Understanding which local platforms dominate your category – WeChat for lifestyle, JD.com for electronics, Douyin for fashion – is essential for effective targeting and distribution.

Censorship and Sensitivity Triggers

Certain topics are politically or culturally sensitive. Surveys referencing religion, politics, or unapproved health claims can be flagged or blocked entirely. Even innocuous questions can trigger red flags if phrased poorly or translated without nuance.

Keywords are monitored. Platforms may moderate or remove open-ended questions without warning. Local partners can help navigate this, but only if they’re experienced in compliance and crisis management.

Bias in Responses

Chinese respondents often provide socially desirable answers, particularly in group settings or when speaking with foreign researchers. This is amplified by a strong cultural emphasis on harmony and avoiding confrontation.

The result is the overreporting of satisfaction, the underreporting of criticism, and the avoidance of direct disagreement. Without accounting for this bias, insights may appear overly positive or lacking urgency.

Regional Disparities

National statistics mask deep divides. According to the latest figures from the CNNIC, Internet penetration in major cities exceeds 85%, while some rural provinces lag well behind. Income, education, language, and digital fluency vary significantly across regions.

Research that doesn’t account for these differences risks skewing results and missing critical growth markets. A tiered city strategy, and potentially multiple fieldwork approaches, is often necessary.

Language, Dialects, and Double Meanings

Mandarin is the official language, but dozens of dialects are spoken across China, and translation doesn’t guarantee comprehension. Idioms, cultural references, and platform-specific slang all shape how questions are interpreted.

Professional translation is only the starting point. Effective market research in China requires back-translation, pre-testing, and review by native speakers familiar with the region and category.

Even well-designed research can fail if these barriers aren’t acknowledged upfront. The stakes in China are high, but so is the opportunity for brands that navigate these challenges with agility, respect, and local expertise.

Emerging Trends in Chinese Market Research

China’s market research landscape isn’t just evolving; it’s leapfrogging. As technology reshapes how consumers engage, researchers are adopting new tools and approaches that better reflect the speed, scale, and nuance of digital life in China.

Integrated Research Within Super Apps

WeChat has transformed from a messaging tool into a multi-functional ecosystem for shopping, banking, health, and more. Increasingly, research is embedded directly within WeChat mini-programs, enabling surveys, polls, and behavioral tracking to happen seamlessly in the same environment where users transact.

This integration boosts response rates and allows for real-time, contextual insights. For example, gauging user feedback moments after a purchase or app interaction.

Social Listening on Local Platforms

Global sentiment tools like Brandwatch or Talkwalker don’t scrape Chinese platforms like Xiaohongshu, Weibo, or Bilibili. To monitor what Chinese consumers are saying, researchers rely on local social listening tools that can decode hashtags, emojis, slang, and fast-evolving memes.

This form of ethnography has become essential for brands in categories like beauty, fashion, tech, and food, where peer recommendations, micro-influencers, and short-form content drive purchasing decisions.

In beauty, for instance, Xiaohongshu is often a more trusted source than a brand’s official site. Comments, before-and-after photos, and product comparisons offer deep insight into consumer expectations and unspoken needs.

Live-Stream-Based Research

As live commerce explodes, researchers use similar formats to study in-the-moment decisions. Participants join live-streamed product trials or share mobile screens during real-time shopping journeys. This allows moderators to observe how users navigate product detail pages, evaluate reviews, respond to promotions, and decide what to buy or abandon.

These sessions offer a window into algorithm-driven behavior and allow researchers to identify digital triggers that wouldn’t surface in traditional interviews.

Gamification and Incentivized Micro-Tasks

Younger audiences are more likely to engage when research feels like a game or a challenge. Some brands now use gamified surveys, interactive quizzes, or platform-native rewards (like Douyin points or JD.com discounts) to increase participation and reduce drop-off rates.

Gamification also helps capture emotion or implicit reactions using image-based questions, timed responses, or swipe-to-choose interfaces, making it easier to analyze subconscious preferences.

AI-Driven Insight Generation

Artificial intelligence is increasingly used to clean, categorize, and analyze large volumes of qualitative data. Tools trained on Mandarin and regional dialects can now detect sentiment, group themes, and even flag contradictions in long-form responses or transcripts.

While human moderation remains critical, AI tools reduce turnaround times and help local teams scale research efforts, especially when tracking trends across vast volumes of user-generated content.

These emerging approaches aren’t experimental; they’re fast becoming the standard. In a market defined by innovation, brands that fail to evolve their research strategies risk falling behind the very consumers they’re trying to understand.

Winning with Cultural Intelligence

Success in China isn’t just about size or speed—it’s about understanding the systems, signals, and subtleties that shape how consumers live, decide, and spend. In a market where mobile usage is near universal, foreign platforms are blocked, and behaviors shift rapidly across city tiers, standard global research playbooks won’t cut it.

The most effective market research in China is never plug-and-play. It’s built locally, tested regionally, and interpreted fluently in culture and context. It demands partnerships with in-country experts, compliance with data sovereignty laws, and a deep understanding of what drives decisions on platforms like WeChat, Douyin, and Xiaohongshu.

However, the payoff is significant for brands willing to invest in this level of understanding. China offers not just scale, but a glimpse into the future of how digital behavior, platform ecosystems, and consumer expectations may evolve globally.

Market research here isn’t just about validating concepts. It’s about uncovering what matters – on the ground, in the feed, and the moment.

FAQ: Market Research in China

Is it legal to conduct market research in China?

Yes, but it must comply with China’s Personal Information Protection Law (PIPL) and the Data Security Law. Foreign companies must work with licensed local research partners and ensure all data collection and storage happens within China, unless otherwise approved.

What platforms can I use for surveys in China?

Global tools like SurveyMonkey and Google Forms are often blocked. Common local platforms include:

  • Wenjuanxing (问卷星)
  • Sojump (金数据)
  • Tencent Questionnaire

These platforms integrate with WeChat and are compliant with Chinese regulations.

How do Chinese consumers typically respond to surveys?

Cultural norms like mianzi (saving face) can lead to socially desirable answers. Surveys should use indirect phrasing, behavioral questions, and localized framing to encourage more authentic responses.

What is the best way to recruit respondents in China?

Recruitment should be regionally tailored:

  • Use WeChat groups for urban panels.
  • Work with local community partners in lower-tier cities.
  • Offer incentives via WeChat Pay or Alipay to boost response rates.

Can I use social listening tools in China?

Yes, but global tools like Brandwatch may not cover Chinese platforms. Use local tools to monitor:

  • Xiaohongshu (RED) for product reviews and beauty trends
  • Douyin and Kuaishou for e-commerce behavior
  • Weibo for sentiment tracking

Is live-streaming research really used in China?

Yes. Live-stream-based digital ethnography is growing fast. Researchers observe participants via mobile screen share while they browse or shop, offering real-time insight into how decisions are made.

How to conduct online market research in Asia: The Go-To Guide
Interested in understanding how to approach online research across other Asian countries? Download the guide here

Need help navigating China’s complex research terrain? Our Asia-based teams specialize in platform-specific, compliant, and culturally tuned research solutions. Contact us today.

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Food prices in Japan have surged since 2022, shifting consumer habits in ways that brands cannot afford to ignore. A nationwide study by our sister company, CMG Inc., reveals the extent of this shift, showing how inflation influences where, what, and how often people buy groceries.

Japanese consumers have long prioritized quality and brand loyalty, often paying a premium for fresh, locally sourced ingredients. However, inflation is shifting these behaviors. Our study shows that more shoppers seek discounts, adjust grocery lists, and change stores to cope with rising costs.

Our study of Japanese consumers aged 20 to 69 found that 90% feel the strain of rising food costs, with 70% experiencing it intensely. Prices for essential staples like rice, leafy greens, and eggs have surged, pushing shoppers toward lower-cost alternatives, bulk buying, and store-switching strategies.

Households are adjusting by choosing cheaper alternatives, relying on discounts, and carefully planning purchases to minimize costs. The findings reveal how inflation shapes the Japanese food market today and how brands must adapt to meet shifting consumer priorities.

Japanese consumers feel the weight of rising food prices

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Inflation is hitting middle-aged consumers the hardest. Women and those aged 40 to 60 report the most strain as they juggle rising grocery bills alongside housing, childcare, and utility costs.

Rice tops the list, with three-quarters of respondents saying its cost has risen. Leafy vegetables, eggs, and fruits are among the most frequently cited items experiencing price hikes. The rising costs of these essentials are pushing consumers to reconsider their grocery lists, with many shifting to more affordable alternatives or cutting back on certain items altogether.

Consumer sentiment suggests inflation is not just a financial strain but an ongoing source of anxiety. Many households are adjusting broader spending patterns, cutting back on dining out and non-essential purchases as they prioritize their grocery budgets. This heightened sense of caution underscores the urgency for brands to meet evolving needs with adaptable solutions.

Implications for Brands

As inflation shapes consumer habits, brands operating in the food industry must rethink their strategies. Price sensitivity is now a dominant force in purchasing decisions, making affordability and value essential selling points. Companies that rely on staple food products may need to introduce smaller pack sizes, bulk discounts, or subscription-based models to maintain customer loyalty.

This shift presents an opportunity for brands that offer alternatives to high-cost staples. The surge in demand for lower-cost items like bean sprouts and tofu suggests that consumers are willing to make substitutions. Positioning these products as smart, affordable choices through targeted marketing and in-store promotions could help brands capture market share.

Retailers and food manufacturers must also recognize that Japanese consumers actively seek ways to save. Loyalty programs, digital coupons, and promotional bundles could play a more significant role in purchasing decisions as shoppers become more selective about where they spend their money. Companies that can balance pricing strategies with perceived value will be best positioned to navigate the evolving food market in Japan.

How Consumers Are Changing Their Shopping Habits

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As prices climb, Japanese consumers are becoming more strategic. Nearly 30% are actively hunting for clearance deals, while an equal share is switching supermarkets in search of lower prices. Discount chains and bulk retailers see increased foot traffic as shoppers shift from premium stores to budget-friendly alternatives.

Beyond price-driven decisions, shoppers are becoming more disciplined in their purchasing habits. Many are researching deals in advance, planning their shopping lists, and buying only what is necessary. This shift suggests that impulse buying is declining, making it harder for brands to capture spontaneous purchases. Instead, consumers approach grocery shopping with a calculated mindset, weighing every purchase against cost and necessity.

Digital engagement is also playing an increasing role in consumer decisions. More shoppers use online price comparison tools, retailer apps, and e-commerce platforms to track discounts and find the best deals. Brands that integrate their promotions seamlessly into these digital channels will have a greater chance of influencing purchase decisions early on.

However, in-store promotions and point-based rewards in Japan remain highly influential, offering brands an alternative way to engage cost-conscious consumers. Brands that integrate their promotions seamlessly into digital and physical retail channels will have a greater chance of influencing purchase decisions before consumers even enter a store.

Implications for Brands

With price-conscious behavior shaping the market, brands must adapt their pricing and promotional strategies. Offering flexible discounts and personalized promotions could help retain customers who might otherwise trade down to lower-cost alternatives. Brands traditionally relying on premium positioning may need to consider budget-friendly variations or value packs to stay competitive.

A prime example of a brand adapting to shifting consumer behavior is Nissin Foods, the maker of Cup Noodles. The company has introduced new flavors and healthier options for health-conscious consumers while maintaining affordability. Its focus on sustainability through eco-friendly packaging and responsible sourcing has also helped sustain consumer loyalty despite economic challenges.

Retailers also need to rethink in-store and digital promotions. Placing high-demand items in visible areas, bundling products at competitive prices, and integrating discount offers into mobile shopping apps can help maintain customer engagement. As shoppers become more deliberate, brands must ensure they are part of the decision-making process before consumers reach the checkout counter.

What are people buying less and more often?

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Rising prices are forcing consumers to rethink where they shop and what they buy. The survey reveals a clear pattern – high-cost staples are being purchased less frequently, while affordable alternatives are gaining traction. Since 2021, Japan has experienced a significant surge in rice prices. In 2023, the average selling price for a 60-kilogram bag of rice was approximately ¥15,310 (about $139 USD). By January 2025, this price escalated to ¥25,927, a 69% increase from the previous year. This equates to roughly $171 USD.

At the same time, lower-cost and versatile food items are seeing an uptick in sales. Bean sprouts and tofu, known for their affordability and adaptability in Japanese cuisine, are among the top foods people buy more often. Bread, another relatively inexpensive staple, has also gained popularity. The trend suggests consumers prioritize foods that offer more servings, opting for ingredients that stretch further and provide better value.

Implications for Brands

Understanding these shifts is critical for food manufacturers and retailers. Brands in high-cost categories need to rethink how they position their products. Offering smaller portion sizes, value packs, or price promotions could help retain consumers considering cutting back. For brands selling products that are growing in demand, this is a moment to strengthen their market position. Highlighting the versatility, nutritional benefits, and affordability of products like tofu and bean sprouts can reinforce their appeal in price-sensitive times.

Retailers should also adapt by ensuring budget-friendly items are well-stocked and prominently displayed. Promotional strategies should focus on cost-effective meal solutions, helping consumers maximize their grocery budgets. As inflation influences purchasing decisions, brands that align their offerings with consumer priorities will be best positioned to maintain loyalty and sales.

How Japan’s food inflation compares to the West

Rice isn’t just a staple in Japan—it’s a cultural cornerstone and an economic indicator. Unlike many Western nations where grains are heavily imported, Japan produces most of its rice domestically, meaning price fluctuations reflect deeper economic shifts. This inflation trend mirrors similar surges in other staple foods worldwide, such as wheat in the U.S. and soybeans in China.

Food prices are rising worldwide, but the impact varies from country to country. While Japan is seeing sharp increases in staples like rice, vegetables, and eggs, the US and the UK markets are grappling with their inflation-driven shifts in consumer behavior. In Western markets, dairy products, meat, and processed foods have been among the most affected categories, driving consumers toward discount grocery chains, bulk buying, and private-label alternatives.

In the US, shoppers increasingly turn to wholesale retailers and discount supermarkets to cut costs. Many are switching from brand-name products to store-brand alternatives, with major retailers reporting a surge in private-label sales. Coupon usage once thought to be in decline, has made a strong comeback, mainly through digital platforms and loyalty apps. In the UK, where food inflation and the cost of living have been a persistent challenge, many households are scaling back on meat purchases and opting for frozen or tinned foods as a cost-saving measure.

Despite regional differences, the global trend is clear – consumers are becoming more intentional about how and where they spend their grocery budgets. The shift toward discount-driven shopping, meal planning, and strategic purchasing decisions redefines how food brands and retailers operate across markets.

While Japan sees a shift toward staples like tofu and bean sprouts, the US and UK consumer shifts lean toward private labels and bulk buying, highlighting different approaches to cost savings.

Implications for Brands

Brands must recognize that price sensitivity is no longer confined to specific regions. Inflation-driven purchasing habits are reshaping consumer expectations on a global scale. Affordability and value have become key decision-making factors, making it essential for brands to rethink their pricing and promotional strategies.

Companies that traditionally cater to premium or discretionary food categories may need to introduce flexible pricing structures, offering economy-sized packaging or subscription models to retain budget-conscious shoppers. Meanwhile, brands positioned in lower-cost categories have a unique opportunity to strengthen their appeal, emphasizing the affordability and versatility of their products.

Japan’s beef bowl industry thrives despite multiple price hikes due to rising costs. Zensho Holdings, the parent company of Sukiya, a Japanese restaurant chain that serves gyudon (beef bowls), curry, and other dishes, has reported strong profit growth and increased customer numbers, highlighting how strategic pricing and strong brand equity can sustain demand even in inflationary times. This resilience reflects Japan’s unique consumer behavior, where quality and convenience often precede purely cost-cutting measures.

Retailers, particularly those in markets where discount shopping is on the rise, should focus on making savings more accessible. Digital loyalty programs, targeted promotions, and clear communication around price advantages will be critical in maintaining consumer trust and engagement in a price-sensitive environment.

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How brands can adapt to a cost-conscious market

Food inflation is not just reshaping consumer habits but redefining how brands must approach pricing, marketing, and product development. As shoppers prioritize affordability and shift toward lower-cost alternatives, companies must take a proactive approach to remain relevant in a rapidly changing market.

One of the most immediate strategies for brands is pricing flexibility. Offering a range of product sizes at different price points can help cater to varying consumer budgets. Smaller packaging options can attract shoppers looking to control their spending, while bulk discounts can appeal to those who prefer to stock up when prices are favorable. Subscription models that provide cost savings over time may also help retain customer loyalty, particularly for staple goods.

Product positioning is equally important. Brands that once relied on premium pricing must now justify their value through differentiation. Messaging focusing on nutritional benefits, sustainability, or versatility can encourage consumers to keep buying products even if prices increase. For brands in high-growth categories like tofu and bean sprouts, reinforcing affordability and multiple-use meal applications can strengthen market share.

Retailers have a crucial role to play in guiding purchasing decisions. Strategic in-store placements, meal-planning promotions, and digital tools that showcase the best value options can help shoppers navigate rising prices. Supermarkets that integrate personalized discounts, loyalty rewards, and digital coupons into their customer experience will be better positioned to retain price-sensitive consumers.

The brands that succeed in an inflationary market will listen to consumers, adapt to shifting priorities, and offer tangible value beyond price alone. As economic conditions continue to shape spending behavior, remaining flexible and responsive will define long-term brand resilience.

Turning Challenges Into Opportunities

Rising food prices are forcing consumers to rethink their purchasing decisions, but they are also creating new opportunities for brands willing to adapt. The shift toward cost-conscious shopping is not a temporary adjustment; it reflects a more profound change in consumer behavior likely to persist even if inflation stabilizes. Brands that recognize these shifts and respond strategically will retain their customer base and strengthen their market position in the long run.

Innovation will be key for companies in high-cost categories. Reformulating products to be cost-effective without compromising quality, offering flexible portion sizes, and introducing alternative ingredients can help brands navigate price sensitivity. For companies in growing categories, reinforcing the value of their products through effective messaging and promotions will be essential to sustaining momentum.

Digital engagement is also becoming more critical. Consumers increasingly rely on price-comparison tools, e-commerce discounts, and loyalty programs to make informed purchasing decisions. Brands that invest in personalized marketing, mobile-based promotions, and transparent pricing strategies will be better positioned to build long-term trust with their audience.

Food inflation is reshaping the competitive landscape, but it must not be a setback. Companies that approach this challenge with flexibility, creativity, and consumer-first thinking can turn market uncertainty into a moment of strategic growth.

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Margin of Error Calculator.

How precise are your survey results? Use our Margin of Error Calculator to see how reliable your data is and understand how much your results could vary.

What is a Margin of Error Calculator?

A Margin of Error Calculator helps you understand how much your survey results might change if you surveyed more people. It shows the possible difference between the results you got and what the true answer might be for the whole population.
Example: If 60% of people say they like a product with a ±5% margin of error, the actual percentage could be anywhere between 55% and 65%. A smaller margin of error means more precise results, but it usually requires a larger sample size.
This tool helps businesses, researchers, and marketers measure the reliability of their data before making important decisions.

Please enter a number greater than or equal to 0.
Please enter a number greater than or equal to 0.

What Does the Result Mean?

The margin of error tells you how much your survey results might change if you surveyed more people.

✔ Smaller margin of error (e.g., ±3%) → More accuracy, but requires more responses.
✔ Larger margin of error (e.g., ±5% or more) → Less precision but needs fewer responses.

Need to determine how many responses you need? Use our Sample Size Calculator to find out.

How to Use the Margin of Error Calculator

  1. Step 1: Enter your Sample Size—The number of people who completed your survey. More responses = better accuracy. For example, if 250 people answered your survey, enter 250 as your sample size.
  2. Step 2: Enter your Population Size – This is not the population of a place. It is the total number of people in the group you want to study. If unsure, use an estimate. For example, if you’re surveying employees at a company with 5,000 staff members, your population size is 5,000.
  3. Step 3: Pick your Confidence Level – How sure do you want to be about your results? Common choices are 90%, 95%, or 99%. A higher confidence level means more accuracy but requires more responses. For example, a 95% confidence level means that if you repeated the survey 100 times, you’d get similar results 95 times.
  4. Step 4: View your Margin of Error—The tool will show your Margin of Error, the possible range by which your results may vary. For example, if 60% of people in your survey like a product and your margin of error is ±4%, the actual percentage could be anywhere between 56% and 64% in the full population.

Why Is It Important to Calculate the Margin of Error?

✔ Ensures Accuracy – Helps you understand how close your survey results are to the true population data.
 ✔ Builds Confidence – A lower margin of error means you can trust your findings when making important decisions.
 ✔ Guides Sample Size – Shows whether you need more responses to improve precision.
 ✔ Detects Meaningful Differences – Helps determine whether small survey result changes are real or just random variations.
 ✔ Essential for Business and Research – Used in market research, healthcare studies, polling, and decision-making to ensure reliable insights.

Want to create better surveys? Learn how to ask the right questions and get reliable answers in our market research survey guide.

Who Can Use This Calculator?

✔ Market Research and Businesses – Check customer surveys’ reliability before making decisions.
 ✔ Academic and Social Research – Ensure studies accurately represent populations for research and policy analysis.
 ✔ Healthcare and Clinical Trials –
Determine how many patients are needed for valid medical research.
 ✔ Employee and Workplace Surveys – Gather reliable employee insights for engagement and policy decisions.
 ✔ Government and Public Policy – Calculate how many people are needed for voter research and census studies.
 ✔ Media and Advertising – Measure public opinion and ad effectiveness with accurate sample sizes.

Now that you know your margin of error, get expert insights to maximize your research!

Need help designing your survey or analyzing results? As a leading market research agency, we provide in-depth insights to drive better decisions.
Contact us today to discuss your research needs!

Sample Size Calculator.

How precise are your survey results? Use our Margin of Error Calculator to see how reliable your data is and understand how much your results could vary.

What is a Sample Size Calculator?

A Sample Size Calculator helps you determine the number of people you need to survey for reliable results. By entering key details like population size, confidence level, and margin of error, you can calculate the ideal sample size for accurate research findings. For example, If you’re surveying 10,000 customers and want 95% confidence with a 5% margin of error, the calculator will tell you how many responses you need to ensure trustworthy insights.

Please enter a number greater than or equal to 0.
Please enter a number from 0 to 100.

What Does the Result Mean?

The sample size calculation tells you how many people you must survey to get reliable results. If the calculator suggests 400 respondents, that means surveying at least 400 people will give you statistically reliable results within your chosen margin of error. A larger sample size increases accuracy, while a smaller one may produce less precise results. Use this number to plan your survey with confidence!

Tips:
Want more precision? Lower the margin of error, but this will increase the required sample size.
Not sure how many people to survey? Try different confidence levels and margin of error settings to see how they affect sample size.

Now that you have your sample size, what’s next?
Need to check how precise your results are? Use our Margin of Error Calculator to measure the accuracy of your survey.

How to Use the Sample Size Calculator

  1. Step 1: Enter your Population Size – This is not the total population of a country or city. It’s the specific group you want to study (e.g. school students between the ages of 10 to 16 in the U.S.). If you’re surveying customers of a particular store, the population size is the total number of customers who shop there, not the entire city.

  2. Step 2: Choose your Confidence Level – Select how sure you want to be about your results (90%, 95%, or 99%). A higher confidence means greater certainty but requires more responses to reduce errors. For example, a 95% confidence level is the standard for most surveys, but if you choose 99%, you’ll need a larger sample size for higher accuracy.

  3. Step 3:  Select your Margin of Error – The range within which the true result may vary. Choose how much your results might vary from the true answer.
    ✔ Smaller margin (±3%) → More accurate results but requires more responses.
    ✔ Larger margin (±5% or more) → Less precise but needs fewer responses.
    For example, If 60% of people like a product and your margin of error is ±3%, the real number could be between 57% and 63%. A ±5% margin means it could be between 55% and 65%.

  4. Step 4: View Your Sample Size – The tool will tell you how many responses you need for reliable data.

  5. Step 5: Plan your survey: Use this number to ensure your research is accurate and meaningful before launching your survey.

Why Does Sample Size Matter?

Getting the right sample size is key to accurate and reliable results. Here’s why it’s important:

Accuracy – Reduces errors and makes your survey results more reliable.
 ✔ Efficiency – Saves time and resources by collecting just the right amount of data.
 ✔ Trustworthy Insights – Ensures your findings reflect the whole population, not just random chance.

Want to ensure your qualitative research captures the right insights?

Explore how different approaches impact your study and discover best practices for gathering meaningful data in our expert guide on sampling methods.

Who Can Use This Calculator?

Market Research and Businesses – Find the right number of customers to survey for product feedback and market trends.
Academic & Social Research – Ensure studies accurately represent populations for research and policy analysis.
Healthcare & Clinical Trials – Determine how many patients are needed for valid medical research.
Employee & Workplace Surveys – Gather reliable employee insights for engagement and policy decisions.
Government & Public Policy – Calculate voter research and census study respondents.
Media & Advertising – Measure audience opinions and ad effectiveness with accurate sample sizes.

Now that you have your sample size get expert insights to maximize your survey’s design.
We provide in-depth insights to drive better decisions as a leading market research agency.

Contact us today to discuss your research needs!

Amy Lo explores her personal experiences growing up across two vastly different continents and how these have shaped her insight career. 

When I was 12 my Dad announced I was to leave my home in Taiwan to attend boarding school in England. The resulting 10 years were to shape me in a way neither he, nor I could ever have imagined. 

Growing up across two continents that are so vastly different in terms of culture, climate and consumption meant living in a state of perpetual adaptation, seeking ways to adjust to the environment around me, both at school and then back at home during school holidays. 

I think this constant need to adapt to my surroundings is the reason I first started to closely observe the people around me, their behavior, their motivations, the things that made them similar and the things that made them different.

Skip to the present and as it turns out my fascination with people, their stories, backgrounds and culture has influenced me in my choice of career. As a qualitative market researcher it is my job to investigate the beliefs, perceptions and essential truths behind people’s behavior – and establish patterns amongst them.

I love this career for the opportunity it gives me to gain insight into our respondent’s lives and, of course to deliver Insight Worth Sharing to my clients. 

There is also a lot of variety; during my first role as a Graduate Insight Executive in Taiwan I spent time with a wide variety of respondents from tech-savvy consumers aiming to optimize a mobile-friendly home page for Yahoo to new mums sharing all about their nappy usage. One weekend we would be speaking to HNWIs about luxury holidays and the following weekend, accompanying Chinese teenagers on their hunt for the perfect pair of jeans! 

During a recent project in my current role at Kadence International in London I found myself face to face with my two ‘home’ nations. The study, for a luxury technology brand, involved investigating some of London and Shanghai’s wealthiest individuals and uncovered some vast and fascinating differences in priorities, preferences and behaviors of the Chinese elite against their UK counterparts. 

This study motivated me to understand more about today’s Asian consumer. How can brands adapt their approach to suit this vast and lucrative market? And, how can we as researchers select the best methodologies in order to gather the richest, most valuable insights?

Growing up across two continents that are so vastly different in terms of culture, climate and consumption meant living in a state of perpetual adaptation. I love this career for the opportunity it gives me to gain insight into our respondent’s lives and, of course to deliver Insight Worth Sharing to my clients. With over 700 million Internet users and a little shy of 600 million smartphone users in China (as of 2016), the future of online qual is extremely exciting.

In true millennial style, I started my investigations through my own social network. My friends from Asia were always posting in feeds, reviewing the latest products they have tried. I observed a willingness to share allegiances to particular brands, which doesn’t represent brand loyalty per se, simply that they are not afraid to share their opinions. Many of my female friends have their own blogs, discussing their views on the latest trends in clothes and make up and my feed is regularly inundated with ‘outfit of the day’ posts with links that take you to web shops where you can make a quick purchase from the endorsed brand or seller. 

Surprisingly for China, a country where censorship is widespread, opinions and voices on the Internet are loud and plentiful. Unlike Western countries, there is little trust in traditional media sources such as TV, press or radio. Instead, word of mouth is an increasingly powerful tool, as people use social media platforms to personally share information and opinions with friends and family. 

This trend has been identified by brands in China, who have made it their priority to create intelligent, comprehensive digital campaigns to facilitate the spread of their products or services. This is also why brands are carefully monitoring their e-reputation. Product reviews on the web have a growing influence on people’s decision making. Brands understand the need to nurture advocates within each and every social circle to build credibility and customer proximity. 

Back to my professional experience, working closely with a wide range of Chinese audiences both in Asia and in the UK, I have learnt that I most enjoy using methodologies that give me longer and closer contact with my audience, these allow me to really get to know each and every one of their stories, background and culture. 

Market research online communities offer a highly effective way for UK researchers to gather insight from Chinese audiences. Logistically simple (no working around time differences); methodologically effective (tap into natural online behaviors to provide a truthful engagement with our target audience) and financially efficient (no expensive flights and hotels!). 

Chinese audiences can often be more comfortable providing their opinions via the Internet particularly with certain more sensitive or divisive topics where they can retain a sense of anonymity. With online research methods, there are fewer concerns about their voices or faces being identified – and therefore a greater willingness to share.

With over 700 million Internet users and a little shy of 600 million smartphone users in China (as of 2016), the future of online qual is extremely exciting for me. Mobile devices are the main mode of Internet access and instant messaging is the top online activity in China. Apps such as WeChat are used on a daily basis, just as you and I use WhatsApp to keep in touch with friends and family. WeChat has evolved from a pure instant messaging app to (quoting the FT in April 2016) an app that is a phone, messenger, video conference, ecommerce platform and gaming console, not to mention noodle delivery service, for a nation of people in love with their smartphones. 

Some companies are already using WeChat as a data collection tool for short quantitative surveys, tapping into its mass user base and taking full advantage of its ability to provide instant responses.

And given that the app is already in most people’s pockets means we can largely conduct many of the conventional qualitative methods through WeChat as well. We’re already gaining insights through both interaction and observation, from in-depth interviews to accompanied shopping, to digital diary logging. It’s amazing – but we’re able to follow the steps of Chinese respondents through the lenses of their smartphones from the comfort of their chairs in London. 

genz-consumer-behavior-report

The casual nature, accessibility and users’ familiarity with WeChat helps encourage user interaction, engagement and participation, thereby improving our capability to obtain accurate and honest insights. 

The opportunity to use social media platforms for qualitative research is not completely unique to the Chinese market. We know some have been doing focus groups on WhatsApp, and some are using Facebook as a research tool. There is no reason why something similar cannot become a more prevalent research method in the West, provided we have a similar multifunctioning social media platform and the same abundance of users already familiar with the platform.

Personally, I find the possibility of conducting focus groups and in-depth interviews from my iPhone a very exciting prospect. With social media platforms such as WeChat, in a click of a button, I’m in touch with a group of people 5000 miles away, tapping into every aspect and every minute of their lives and uncovering trends through my very own device. I can do this whilst on the go and, when something I see on the street suddenly inspires me, I no longer have to wait until Monday. I can simply pop a question to my group and wait 5 seconds to see what they have to say. 

Looking back, whilst my 12 year old self may have resented my Dad’s decision to send me away from Taiwan to the UK, in hindsight, it was the best decision he ever made.

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What’s more critical in international marketing—relevance or consistency? 

For global brands, this question defines the core of strategic decision-making. Consistency safeguards a unified brand identity across all markets, while relevance allows a brand to adapt its message to local cultures and consumer behaviors. As global markets become increasingly interconnected, brands must navigate the delicate balance between the two.

Striking this balance is among the most complex challenges facing global marketing leaders. While consistency helps reinforce brand trust and recognition, relevance ensures a brand connects deeply with the local audience. So, how do relevance and consistency coexist to drive global growth? 

Defining Relevance in International Marketing

Relevance in international marketing requires more than surface-level localization or simple translation. It involves understanding the local culture, values, language, and consumer behaviors deeply enough to ensure your brand message resonates. 

This understanding can make the difference between success and failure in highly fragmented and competitive markets. Brands that tailor their strategies to fit regional preferences and cultural norms create stronger consumer connections.

Today, relevance is not a choice—it’s a necessity. Consumers aren’t just seeking products; they want brands that understand and align with their cultural contexts. Brands that successfully adapt their message while maintaining core values tend to outperform those that adopt a uniform, one-size-fits-all approach across regions.

L’Oréal is  agreat example. The brand faced this challenge when entering Japan’s beauty market. Their traditional messaging, which worked well in Western markets, wasn’t resonating with Japanese consumers, who prioritize skincare over makeup. To connect with this audience, L’Oréal shifted focus from makeup to skincare, positioning it as foundational to beauty, in line with Japanese cultural values. A highly successful localized campaign strengthened L’Oréal’s market position without compromising its global brand identity.

The Importance of Consistency in Global Branding

Consistency is essential to maintaining a recognizable and trustworthy brand identity across multiple markets. While relevance allows adaptation, consistency ensures the brand’s core message remains intact, helping build long-term loyalty and trust. Consumers increasingly expect a stable brand experience—whether they interact with the brand in New York, Shanghai, or Jakarta.

Consistency is particularly critical in sectors like luxury goods or technology, where consumers seek assurance of high quality and reliability. A fragmented brand identity can confuse consumers, erode trust, and ultimately weaken brand equity. Consistency creates a stable foundation upon which localized adaptations can be built without compromising the brand’s essence.

Apple’s Global Consistency

Apple has mastered the balance between consistency and relevance. Across all its markets, Apple’s brand identity remains focused on innovation, premium design, and simplicity. However, it still adapts to local market preferences when necessary. For example, in China, Apple introduced larger screen sizes and enhanced camera functions for mobile gaming and selfies—key preferences among Chinese consumers—without diluting its global brand message of quality and innovation. This approach has allowed Apple to grow its market share in China without sacrificing the consistency of its brand identity.

The Global Challenge: Relevance versus Consistency

Balancing relevance and consistency is one of the most significant challenges for global brands. Too much emphasis on relevance risks diluting brand identity, while rigid consistency can alienate local consumers. The key is to view relevance and consistency not as opposing forces but as complementary strategies that, when effectively managed, can drive both local and global success.

A recent Nielsen survey highlights this balancing act: 72% of global consumers expect brands to understand local preferences, but 68% still want a consistent global experience. This demonstrates consumers expect brands to adapt where necessary but without compromising the unified message that defines the brand.

Dove’s #RambutAkuKataAku Campaign in Indonesia

Image Source: INMOBI

Unilever’s Dove brand provides a perfect example of balancing relevance and consistency in Indonesia. Dove is globally recognized for its messaging around real beauty and body positivity, resonating with women worldwide. However, when Dove entered Indonesia, it realized that local cultural values and modesty required a more nuanced approach.

Campaign Idea:

In celebration of Kartini Day, Dove launched the #RambutAkuKataAku (My Hair My Say) campaign to empower Indonesian women to embrace their authentic selves through personal expression, particularly with their hair choices. Recognizing the cultural significance of modesty in Indonesia, Dove tailored the campaign to respect traditional values while promoting self-confidence and real beauty. The campaign optimized nano influencers to submit their content in Kartini’s day and divided them into three main categories, Hijab, Normal hair and Unique Hair.

Approach:
The campaign encouraged women across Indonesia to share stories about embracing their natural beauty, specifically through their choice of hairstyle and color. Dove partnered with InMobi to amplify this message, using mobile platforms as the primary engagement channel. This strategy allowed women to easily participate by sharing their experiences, reinforcing Dove’s message of empowerment in a culturally sensitive way. The campaign resulted in 254 tweets, 400 photos submitted, 4,996,154 followers, and a 5.06% engagement rate.

Strategies for Achieving Both Relevance and Consistency

Balancing relevance and consistency requires a strategic framework for flexibility within defined boundaries. Brands must develop a strong global identity while enabling local teams to make data-driven adaptations that resonate with their market. 

Here are some effective strategies for achieving this balance:

  • Establish a Clear Global Brand Identity: Define your brand’s non-negotiable elements—values, tone, and visual brand identity. These should remain consistent across all markets.
  • Empower Local Teams: Local marketing teams have critical insights into regional preferences, trends, and consumer behaviors. Empowering them to tailor campaigns within the global brand framework ensures relevance without fragmenting the brand.
  • Leverage Data for Smart Localization: Predictive analytics and consumer sentiment analysis can guide brands on when to adapt versus stay consistent. Data can inform strategic decisions on how far to localize while keeping the core brand message intact.
  • Create Tiered Campaigns: Develop tiered marketing strategies, allowing for varying degrees of localization. Global campaigns maintain consistency, regionally adapted campaigns reflect cultural differences and highly localized campaigns address unique market needs.

Case Study: The “Thanda Matlab Coca-Cola” Campaign

Campaign Idea:
Coca-Cola sought to maintain its global message of happiness and unity while adapting to the unique cultural contexts of India and China. In India, the brand launched the “Thanda Matlab Coca-Cola” campaign, positioning Coca-Cola as a refreshing drink shared with loved ones, aligning with the country’s strong cultural emphasis on family and togetherness. In China, Coca-Cola adapted its messaging to reflect the significance of the Lunar New Year, associating the drink with celebrations and family reunions.

Approach:
In both markets, Coca-Cola localized its marketing to resonate with cultural norms while maintaining the consistency of its global brand message. In India, Coca-Cola used colloquial language and imagery to make the brand feel familiar and deeply connected to local traditions. In China, the brand aligned with the national celebration of the Lunar New Year, a major cultural event, by emphasizing joy and family gatherings, key pillars of the holiday.

When to Prioritize Relevance and When to Prioritize Consistency

Knowing when to prioritize relevance or consistency is key for international brand marketing. In emerging or culturally distinct markets, local relevance should take precedence. For example, launching new products in markets like Vietnam or Thailand requires an understanding of local values, such as ethical consumption or family-oriented themes.

However, in industries like luxury goods or technology, where global recognition is paramount, consistency should be prioritized. Consumers in markets like the US and UK expect the same high standards of quality and experience. During global crises or product recalls, consistent messaging is essential to preserve brand integrity and prevent confusion.

In the Philippines, for instance, brands that align with local values of family and community, such as food brands emphasizing communal dining, outperform those that don’t. 

However, in Thailand, where luxury consumers expect the same quality experience from brands like BMW or Mercedes-Benz, consistency in messaging and product experience is key to maintaining perceived value. The ability to recognize when to lean into relevance or consistency is critical to success.

In international marketing, success doesn’t come from choosing relevance over consistency or vice versa. The most successful global brands strategically integrate both. Relevance allows brands to connect with local consumers by aligning with cultural preferences, while consistency ensures the brand remains recognizable and trustworthy across all markets.

For senior marketing leaders, the actionable takeaway is clear: define your core brand elements that should remain consistent globally and empower local teams to tailor campaigns for cultural relevance where they make the most impact. Use data-driven insights to guide these decisions, ensuring your brand stays relevant in diverse markets without losing its global identity.

As global consumers grow more connected, brands that master the balance between relevance and consistency will continue to thrive. It’s not about choosing one over the other, but about finding that equilibrium that creates a cohesive, trusted, and culturally resonant brand.

As a global market research agency with offices in ten countries, Kadence International is well-equipped to help you navigate the complexities of international expansion. Whether you need insights into local consumer behavior, guidance on maintaining brand consistency, or support in crafting culturally relevant campaigns, we have the expertise to ensure your brand’s success. With our deep understanding of Western and Asian markets, we can provide the strategic insights you need to grow your brand globally. 

Commemorating more than Three Decades of Global Impact with Fresh Programs and Celebrations

Kadence International, a leading international market research agency, is celebrating its 33rd anniversary. Founded in London in September 1991, Kadence International has since expanded its global footprint. Today, the agency helps brands make data-driven decisions across the world.

Over the past 33 years, Kadence International has grown from a single office in London to a network of ten offices across Asia, the United Kingdom, and the United States. Today, the company serves international brands from its offices in the U.S., U.K., Singapore, Japan, Indonesia, India, Thailand, Vietnam, the Philippines, and China. 

Kadence’s success is built on its commitment to uncovering insights from even the most difficult-to-reach audiences. This approach is driven by a deep curiosity about why audiences think and behave the way they do. This approach has not only differentiated Kadence in the market research industry but has also fueled the company’s growth and impact for over three decades.

To mark this milestone, all Kadence offices worldwide are joining in the celebrations, fostering a spirit of unity and collaboration. One of the key initiatives launched for the anniversary is the “Kaddie Konnect” program. Through this program, selected delegates, known as “Kaddies,” from various country offices will visit another Kadence office globally. These exceptional team members were chosen for their significant contributions to the company and their commitment to fostering international collaboration and sharing best practices.

Reflecting on this achievement, Ramsey Yomen, Global Managing Director, stated: “Reaching this incredible milestone of 33 years is a testament to the dedication and ingenuity of our people and the strength of our culture. Our success has always been built on the passion and commitment of our team, who continue to push the boundaries of what market research can achieve. As we look forward, we remain steadfast in our mission to raise the impact of market research for our clients and the industry worldwide. We are excited about the journey ahead and the opportunities to enhance our global reach and deliver transformative insights for many years to come.”

Miki Igarashi, Chairman, reflected on the company’s journey, saying: “As we celebrate 33 years of Kadence International, it’s inspiring to see how far we’ve come. Our ability to adapt and innovate has been key to our success, allowing us to meet the evolving needs of our clients and the industry. Looking ahead, my vision for Kadence is one of continued growth, stronger global connections, and an unwavering commitment to excellence. As we mark this 33-year milestone, I encourage everyone to take pride in our collective achievements and to embrace the exciting opportunities that lie ahead.”

Kadence’s 33rd-anniversary celebrations exemplify the company’s commitment to continuous innovation and global collaboration. Through programs like “Kaddie Konnect”, Kadence aims to strengthen its global connections and enhance its ability to deliver world-class market research insights.

About Kadence International

Kadence International is an award-winning global market research agency with a radically personal approach. With offices spanning Asia, the United Kingdom, and the U.S., the company is all about one-to-one connections. From real-time data collection to sharing powerful insights, great research starts with a deep understanding of people and ends with discovering game-changing opportunities. Kadence is about people, progress, and passion. 

Learn more about our services here.

Conducting online research in the Philippines presents unique opportunities and challenges. The country has one of the highest rates of internet and social media usage globally. According to the Digital 2023 report by We Are Social and Hootsuite, Filipinos spend an average of 9 hours and 14 minutes online daily, maintaining their position among the most active internet users worldwide. 

Furthermore, 82.4% of the population, or about 92.05 million Filipinos, are internet users, and social media usage is widespread, with 88.7% of internet users actively engaging on these platforms.

Despite this high level of digital engagement, the Philippines faces distinct challenges in adopting online research methodologies. Issues such as relatively slow internet speeds, frequent online scams, and a cultural preference for face-to-face communication create significant barriers. However, these challenges also open the door to innovative research approaches that effectively engage the Filipino audience through tailored and technologically advanced solutions.

Overview of Internet Usage in the Philippines

The latest findings highlight that Filipinos continue to lead globally in terms of internet and social media usage. Filipinos spend an average of 9 hours and 14 minutes online daily, maintaining their position as some of the most active internet users worldwide. The report also shows that internet penetration in the Philippines has reached 82.4%, with approximately 92.05 million Filipinos active internet users. Moreover, social media engagement is remarkably high, with 88.7% of internet users actively participating on social platforms​​.

Demographics of Online Users

The digital landscape in the Philippines showcases a diverse range of online users across different demographics. While the most prominent social media user group is 18-24, there are distinct patterns and preferences among other age groups.

Young Adults (18-24)

  • This group is the most active on social media, driven by college students and young professionals. They frequently use platforms like Facebook, Instagram, and TikTok for personal, academic, and professional purposes. Their mobile-first approach is evident, with a significant 69% accessing Facebook exclusively through mobile devices.

Millennials

  • Millennials also have a strong online presence, engaging in social media, e-commerce, and professional networking. They use platforms like LinkedIn, Instagram, Twitter, and Facebook. This group values mobile accessibility, but many still utilize desktops for work-related activities​.

Generation X

  • Gen X users are active on social media, but their usage patterns differ slightly. They prefer Facebook and YouTube, often to stay connected with family and consume video content. Mobile usage is prevalent, but desktops are still commonly used, especially for work and news consumption.

Boomers

  • Baby Boomers are the least represented on social media but are increasingly adopting platforms like Facebook to stay connected with friends and family. Their internet usage is more balanced between mobile and desktop, reflecting a gradual adaptation to new technologies​.

Gender Differences

  • Regarding gender, Filipino women are slightly more active on social media than men. For example, Facebook’s ad audience data shows that 53.4% of users are female, while 46.6% are male​. This trend is consistent across other social platforms, with women engaging more frequently in social networking and online shopping.

Rural vs. Urban

  • Urban users in the Philippines have better access to high-speed internet and are likelier to use various online services, including e-commerce, online banking, and streaming services. In contrast, rural users face challenges such as slower internet speeds and limited digital infrastructure access, which affect their online activity. However, mobile phones are a common denominator, bridging the gap and providing rural populations with access to social media and basic online services​​.

How the Philippines compares to other Asian countries

AspectPhilippinesSingaporeIndonesiaMalaysiaChina
Internet UsageHigh daily usage (9 hours 14 minutes)Moderate usage (7 hours 2 minutes)High daily usage (8 hours 36 minutes)High daily usage (8 hours 5 minutes)High daily usage (6 hours 59 minutes)
Internet Penetration82.4%92%73.7%89.6%70.1%
Mobile PenetrationHigh, mobile-first internet usersVery high, extensive smartphone penetrationVery high, dominant mobile usersVery high, strong mobile usageExtremely high, mobile-first society
E-commerce BehaviorRapid growth, driven by mobile platformsMature market, high trust in online paymentsGrowing rapidly, mobile-drivenGrowing steadily, high mobile transactionsHighly advanced, dominant global player
Popular PlatformsFacebook, YouTube, Instagram, TikTokWhatsApp, Facebook, Instagram, LinkedInWhatsApp, Instagram, Facebook, TokopediaWhatsApp, Facebook, Instagram, LazadaWeChat, Douyin (TikTok), Weibo, Taobao
Payment PreferencesMobile wallets (GCash, PayMaya)Credit cards, e-wallets (GrabPay, PayNow)Mobile wallets (GoPay, OVO)E-wallets (Touch ‘n Go, Boost)Mobile payments (Alipay, WeChat Pay)
Cultural PreferencesHigh value on face-to-face interactionEfficiency and privacy valuedCommunity-oriented, face-to-face preferredBalance of traditional and modern practicesHigh trust in digital ecosystems

Current Research Methodologies in the Philippines

The adoption of online research methodologies in the Philippines has been relatively slow compared to other countries. Despite the high level of internet and social media usage, several factors contribute to this hesitation.

Preference for Offline Face-to-Face Recruitment and Interviews 

Filipinos prefer offline, face-to-face recruitment and interviews for market research. This preference is rooted in cultural and practical reasons, making traditional methods more popular despite the potential benefits of online alternatives.

Concerns Over Online Scams, Identity Theft, and Bank Fraud

One of the main reasons for the slow adoption of online research methodologies is the widespread concern over online scams, identity theft, and bank fraud. The Philippines has seen a significant number of cybercrime cases, leading to a general mistrust of online transactions and interactions. This apprehension makes respondents hesitant to participate in online surveys or interviews, fearing their personal information might be compromised​.

Importance of Personal Face-to-Face Communication in Filipino Culture

Filipino culture places a high value on personal, face-to-face communication. The ability to gauge the sincerity and trustworthiness of the person you speak with is crucial. Face-to-face interactions allow for better rapport-building and more genuine responses, which is essential in qualitative research. This cultural trait makes offline in-person interviews and focus groups more effective and preferred in capturing accurate and honest feedback.

While there are clear benefits to adopting online research methodologies, such as efficiency and broader reach, the Philippines’ unique challenges and cultural preferences have maintained the dominance of traditional offline methods. Researchers must navigate these factors carefully to design effective studies that respect local concerns and cultural values.

Bridging the Gap: Kadence Philippines’ Approach

Kadence Philippines has proactively addressed the challenges of online research methodologies by adopting various technology-based solutions. These innovations aim to enhance data collection accuracy and improve respondent engagement while respecting local preferences and concerns.

Use of Online Panels and Tablets for Face-to-Face Interviews

Kadence Philippines leverages online panels to reach a broad and diverse audience. Online panels allow researchers to conduct surveys with pre-recruited respondents who have agreed to participate in research studies.

This approach ensures higher response rates and reliable data from targeted demographics. Additionally, during face-to-face interviews, the use of tablets enables real-time data uploads. This technology allows for instant data collection and processing, ensuring the accuracy and timeliness of the information gathered. Incorporating GPS tracking and recording audio or video enhances the quality and credibility of the data collected​​.

Instant Messaging Apps for Low to mid-economic-class respondents

Recognizing the widespread use of mobile phones in the Philippines, Kadence Philippines suggests using instant messaging apps such as Facebook Messenger, Viber, Skype, and WeChat to engage respondents from low to mid-income classes. These platforms are familiar and easily accessible to many Filipinos, making them ideal for conducting surveys and interviews. Instant messaging apps provide a convenient and non-intrusive way for respondents to participate in research, ensuring higher engagement and more accurate responses​.

By embracing these technology-based solutions, Kadence Philippines effectively bridges the gap between traditional and online research methodologies. These innovative approaches address the challenges of online research in the country and align with the Filipino market’s cultural and technological landscape.

The Potential of Online Communities for Research

Online communities are valuable for connecting younger demographics, particularly millennials and Gen Z, in the Philippines. These age groups are highly active online and comfortable sharing their opinions and experiences on digital platforms. Online communities can facilitate in-depth engagement, allowing researchers to gather rich, qualitative data.

Suitability for Connecting with Millennials and Gen Z

Millennials and Gen Z are digital natives who spend a significant amount of their time online. They are accustomed to using social media and other online platforms to communicate, share, and engage with content. This makes them ideal participants for online communities, where they can interact in a familiar and comfortable environment. Research shows that these age groups are more likely to participate in online discussions and share their views openly than older generations.

Using Facebook Groups for Straightforward Projects

For straightforward customer understanding projects, Facebook Groups can be a practical and effective solution. Facebook remains one of the most popular social media platforms in the Philippines, with a high penetration rate among internet users. Creating a private Facebook Group for research purposes allows participants to engage in discussions, respond to surveys, and provide feedback in a familiar setting. This method is cost-effective and can yield valuable insights quickly.

Sophisticated Platforms for Complex Projects

More sophisticated platforms are necessary for more complex projects, such as ad or concept testing. Tools like Recollective, Qualtrics, and Vision Critical offer advanced features designed specifically for research. These platforms provide better security, data analysis tools, and capabilities to handle larger and more diverse participant groups. They are beneficial for projects that require detailed tracking of responses, multimedia interactions, and higher levels of participant engagement.

Online Depth Interviews and Focus Group Discussions

Conducting online in-depth interviews and focus group discussions in the Philippines is feasible but requires careful consideration of the technological and cultural context.

Feasibility of Online Interviews and Focus Groups

Online interviews and focus groups are increasingly viable in the Philippines, especially given the high internet penetration and widespread use of social media and communication platforms. These methods allow researchers to reach participants across different geographic locations, reducing the need for travel and logistics. However, the success of these methods depends on the availability of reliable internet connections and participants’ comfort with technology.

Recommendation for Video Chats

Video chats are highly recommended to bridge the lack of personal presence inherent in online methods. Video calls can replicate the face-to-face interaction that is culturally significant in the Philippines. Platforms like Zoom, Microsoft Teams, and Google Meet are practical tools for conducting these sessions. They allow for real-time interaction, enabling researchers to observe non-verbal cues and build rapport with participants, which is crucial for obtaining honest and detailed responses​​.

Need for Stable Internet Connections

Stable internet connections are essential for smoothly executing online in-depth interviews and focus group discussions. This is particularly important for B2B projects and high socio-economic class (SEC) individuals, who often have access to better internet infrastructure. For participants with less reliable connectivity, contingency plans such as recording responses for asynchronous review or using text-based methods can be considered to ensure data quality and completeness​.

Embracing the New Normal

The COVID-19 pandemic has profoundly impacted the digital landscape in the Philippines, accelerating digital transformation across various sectors. As a result, there has been a significant shift from a predominantly cash-based, face-to-face economy to one that increasingly relies on digital finance, messaging platforms, and telecommuting.

Impact of COVID-19 on Digital Transformation

The pandemic forced many businesses and consumers to adopt digital solutions out of necessity. Lockdowns and social distancing measures led to a surge in online transactions, with digital finance platforms experiencing unprecedented growth. For instance, GCash and PayMaya, two of the leading mobile wallet providers in the Philippines, reported substantial increases in user adoption and transaction volumes during the pandemic​​.

Shift to Digital Finance, Messaging Platforms, and Telecommuting

With the need to minimize physical contact, Filipinos turned to digital finance solutions for everyday transactions. This shift was facilitated by the rapid adoption of mobile wallets and online banking services, enabling users to pay bills, transfer money, and shop online securely. Messaging platforms like Facebook Messenger, Viber, and WhatsApp increased usage as people sought to stay connected while adhering to social distancing guidelines.

The pandemic accelerated the trend toward telecommuting. Many companies adopted remote work policies, leveraging tools like Zoom, Microsoft Teams, and Google Workspace to maintain productivity and communication. This shift ensured business continuity and highlighted the potential for more flexible work arrangements​.

Increased Feasibility of Online Research Methodologies

The necessity of a stable internet connection for work, education, and daily activities has increased the feasibility of online research methodologies in the Philippines. As more households invest in better internet infrastructure, the reliability of online surveys, interviews, and focus groups has improved. Researchers can now reach a broader audience and gather data more efficiently than before.

Potential Long-Term Shift in Research Methodologies Post-Pandemic

The changes brought about by the pandemic will likely have a lasting impact on research methodologies in the Philippines. While traditional face-to-face methods will remain important, the success of online approaches during the pandemic has demonstrated their viability and benefits. Researchers can now integrate a hybrid model that combines online and offline methods, leveraging the strengths of each to obtain comprehensive and accurate data.

As digital literacy continues to improve and internet access becomes more widespread, the acceptance and effectiveness of online research methodologies are expected to grow. This shift could lead to more innovative and adaptive research practices that better reflect the evolving digital landscape of the Philippines.

Final Thoughts

Conducting online research in the Philippines offers immense potential due to the high internet and social media usage among its population. Despite challenges such as slow internet speeds, concerns over online scams, and a cultural preference for face-to-face communication, the adoption of online methodologies is growing. Kadence Philippines has successfully implemented technology-based solutions, utilizing online panels, tablets, and instant messaging apps to bridge the gap. The impact of COVID-19 has further accelerated digital transformation, making online research more feasible and effective.

The Philippines is ready to embrace changes in research methodologies, integrating both traditional and online approaches to achieve comprehensive and accurate data. As digital literacy and internet access continue to improve, the acceptance and effectiveness of online research methodologies are expected to grow, paving the way for more innovative and adaptive research practices.

A comprehensive guide on conducting online market research in Asia is available for those interested in exploring research methodologies in other Asian countries. It provides valuable insights and practical advice.

Download our detailed guide here to gain a deeper understanding of online market research approaches in various Asian countries. This resource offers essential insights and strategies to help you navigate the diverse digital landscapes of Asia.

China’s retail sector emerged as a key driver of economic recovery post-Covid and has surpassed even the most optimistic forecasts. Based on the latest news, retail sales, which is an indicator of consumption, increased by 5.5%. Although it slowed down from a 7.4% rise in December, it still beat the expected 5.2% gain.

During the eight-day Lunar New Year holiday in February 2024, there was a significant increase in travel, which supported the revenue of the tourism and hospitality sectors. As a result, there was a 3% growth in oil refinery throughput to meet the high demand for transport fuels.

Amidst this economic surge, China’s Gen Z—born between 1995 and 2009—are reshaping retail and consumerism in the country. Representing 19% of the national population, this demographic is significant in size and profound in influence. They effortlessly bridge the digital and physical worlds, champion a new wave of ethical consumerism, and exhibit spending behaviors that set them apart from prior generations. As revealed by a joint study from the Tsinghua-Nikkei Institute of Media Studies, their impact on the economy and culture is multifaceted.

Gen Z in China experiences unique challenges, including economic uncertainty and pressures from an aging society. Although the year’s first quarter saw a better-than-expected growth of 5.3% in GDP, experts predict a slowdown in the coming years. The jobless rate among those aged between 16 and 24 is 15.3%, significantly higher than the national average. This economic environment shapes their consumption habits and lifestyle choices, leading to trends such as “reverse consumption” and the “stingy economy” in 2024. In these times, value for money and prudent spending are paramount.

Understanding and engaging with China’s Gen Z is imperative for brands looking to thrive in this dynamic market. Their unique consumer habits and technological savvy fuel China’s retail growth and are poised to redefine global market trends. Gen Z is essential for any forward-looking strategy, especially for brands aiming to secure a foothold in the world’s largest consumer economy.

Understanding Gen Z in China

Demographic Overview

  • Size and Economic Influence: China’s Generation Z comprises individuals born between 1995 and 2009, making up about 19% of the nation’s population. This translates to roughly 265 million people, forming a significant consumer force within the world’s second-largest economy.
  • Key Statistics:
    • Age Range: Currently, ages 14 to 28.
    • Urban vs. Rural Distribution: A significant majority reside in urban areas, mirroring China’s overall urbanization trends. Urban Gen Zers are likelier to have higher disposable incomes and access to digital technologies than their rural counterparts.

Cultural Characteristics

  • Core Values and Attitudes:
    • Individualism and Self-expression: Unlike the collectivist orientation of previous generations, Chinese Gen Z values individuality and self-expression, influenced by global cultural exchanges via the internet.
    • Sustainability and Ethics: They show a heightened responsibility toward the environment and social issues, favoring eco-friendly and ethical brands.
  • Influence of Cultural, Socio-Economic, and Technological Factors:
    • Global Influence: Exposure to global cultures through digital platforms has cultivated a more cosmopolitan outlook among Gen Z.
    • Economic Context: Growing up during China’s rapid economic growth has fostered high expectations for living standards and personal wealth.
    • Educational Opportunities: Improved education systems and resources have led to a more informed and competitive generation.

Technological Integration

  • Role of Digital Technology in Daily Lives:
    • Connectivity: Nearly ubiquitous smartphone usage facilitates constant connectivity to social networks and e-commerce platforms.
    • E-commerce Habits: Gen Z in China is highly comfortable with online shopping, and they often prefer online retail platforms to traditional stores for both research and purchasing.
  • Popular Platforms Among Chinese Gen Z:
    • WeChat: A multi-purpose platform used for messaging, social media, marketing, and payments.
    • Douyin (TikTok): The leading platform for short video content, highly popular for its entertainment value and as a source of trends and products.
    • Bilibili: Known for its focus on anime, comics, and games (ACG) content, it’s a hub for niche communities and deeper fan engagement.
    • Impact on Consumer Behavior: These platforms shape how Gen Z spends their time and influence their consumption patterns, from fashion and entertainment to food and technology.

Case Study: Soul – A Digital Ecosystem Tailored to Gen Z

Background:

Soul, a social media platform with about 80% of its user base from Gen Z, has become a barometer for the shifting preferences and lifestyles of this demographic in China. The platform’s data provides insights into how these young consumers navigate their economic realities with innovative social and shopping behaviors.

Image credit: Soul app website

Key Insights:

  • Strategic Shopping: During major shopping festivals like Singles Day, a significant portion of Gen Z users on Soul meticulously plan their purchases, prioritizing value and quality over impulsive buying.
  • Engagement Trends: The platform has noted a rise in “narcissism” among its users, which is seen not as selfishness but as a form of positive self-care and acceptance. This reflects a broader trend in which mental and personal well-being are as important as physical health.

These insights underscore how digital platforms are retail channels and communities where Gen Z finds support and affirmation for their values and choices. It highlights the critical role of digital ecosystems in shaping young consumers’ purchasing habits and lifestyle choices in today’s economy.

Marketing and Product Strategies for Engaging Gen Z

Product Innovation and Adaptation

Importance of Innovation and Customization:

  • Adapting to Preferences: Gen Z in China values products that serve functional purposes and reflect their personal identity and ethos. Innovation and customization are crucial for products to resonate with this demographic, which prizes uniqueness and personalization.
  • Speed to Market: Rapid prototyping and quick iteration are essential to keep pace with Gen Z’s changing tastes and trends.

Examples of Successful Products Tailored for Gen Z in China:

  • Tech Gadgets: Smartphones and wearables with customizable features (e.g., skins, interfaces) that allow personal expression.
  • Fashion and Beauty: Brands like Perfect Diary offer cosmetics that appeal through limited-edition collaborations with pop culture icons and localized trends, driving online and in-store engagement.
  • Food and Beverage: Snack brands offering exotic flavors or health-oriented products tailored to young consumers’ desire for novelty and wellness.

Branding and Communication

Strategies for Building a Brand That Resonates:

  • Authenticity: Transparency in production processes and business practices, as Gen Z consumers are more likely to scrutinize the authenticity and ethics behind a brand.
  • Sustainability: Emphasizing eco-friendly practices and products, supporting social causes, and engaging in community initiatives that reflect their values and desire for ethical consumption.
  • Community Building: To foster a sense of community, creating spaces for engagement and dialogue, whether through brand-sponsored events or online forums.

Effective Communication Strategies:

  • Language and Tone: Utilizing a relatable and conversational tone in marketing communications that speaks directly to Gen Z’s values and lifestyle.
  • Aesthetics and Design: Visually appealing, bold, and distinctive styles that stand out in the crowded digital landscape.
  • Media Channels: Focusing on digital-first platforms like social media, influencer collaborations, and content marketing on platforms popular among Gen Z, such as Douyin and Bilibili.

Leveraging Technology

Using AI, AR, VR, and Other Technologies:

  • AI: Personalized shopping experiences through AI recommendations based on browsing and purchase history, enhancing user engagement and satisfaction.
  • AR and VR: Offering virtual try-ons for items like clothing and makeup or immersive experiences that allow consumers to engage with a brand or product in innovative ways.
  • Gamification: Integrating game mechanics into apps and campaigns to increase participation and loyalty.

Importance of Mobile-First and Omnichannel Experiences:

  • Mobile-First: Designing campaigns and content with a mobile-first approach, considering most of Gen Z’s interactions and transactions occur on smartphones.
  • Seamless Omnichannel Experiences: Ensuring a consistent brand experience across various online, mobile, and in-store channels to meet Gen Z’s expectations for a fluid shopping experience. 

Case Studies and Examples

Success Stories

Case Study 1: Perfect Diary

Background: Perfect Diary is a Chinese cosmetics brand that has skyrocketed in popularity among Gen Z consumers through savvy digital marketing strategies and collaborations with pop culture phenomena.

Image Credit: YouTube

Strategies:

  • Influencer Partnerships: Leveraging partnerships with major celebrities and micro-influencers to build trust and authenticity.
  • Limited Edition Releases: Creating time-limited products in collaboration with popular TV shows, celebrities, and even national museums, sparking buying frenzies.

Analysis: Perfect Diary’s success reveals Gen Z’s affinity for brands that offer unique, personalized experiences and demonstrate a deep understanding of cultural trends. The brand’s approach illustrates the power of community-driven marketing and the importance of adapting quickly to emerging trends.

Case Study 2: HeyTea

Background: HeyTea, initially founded in 2012 in the second-tier cities of Guangdong, has emerged as a trailblazer in the tea industry by introducing cheese tea, a novel beverage that combines freshly brewed tea with a creamy cheese topping. Originally a small tea shop, HeyTea gained national fame by reinventing traditional Chinese tea culture for a younger audience with new flavors and an Instagram-worthy aesthetic. This innovation has revolutionized the way young consumers in China enjoy tea, particularly in affluent eastern cities.

Image Credit: The Economist

Strategies:

  • Product Innovation: HeyTea redefined traditional tea by introducing cheese tea, served at a 45-degree tilt as recommended by the brand’s ‘tea-ristas’ to perfectly blend the bitter tang of tea with the salty cream cheese cap. This unique product offering captured the imagination and taste buds of a young, urban clientele.
  • Exclusivity and Demand Generation: In its early days, HeyTea created a buzz by limiting purchases and maintaining exclusivity. The long queues at their outlets, sometimes extending up to three hours, were managed by security guards, and the brand had to impose a limit of two cups per person to deter scalpers. This strategy, often referred to as “thirst marketing,” although contested by HeyTea, effectively built a sense of urgency and exclusivity around the brand.
  • Selective Distribution: Initially, HeyTea chose to stay off major food-delivery apps to focus on crafting a high-quality experience that couldn’t be rushed or commoditized. This approach emphasized the artisanal aspect of their offerings, differentiating them from other tea chains that relied on pre-made or powdered ingredients.

The phenomenon of HeyTea speaks volumes about modern consumer behavior in China. The willingness of customers to hire others to stand in line or the implementation of purchase limits illustrates the high value placed on trendy and exclusive products. By offering a product that needed careful preparation and was served in a specific way, HeyTea not only set a new trend but also raised the bar for quality and customer experience in the beverage industry.

HeyTea’s strategy also reveals several crucial insights into broader market trends and consumer preferences:

  • Experience over Convenience: Despite the convenience culture prevalent among Gen Z, the success of HeyTea underscores a contrasting willingness to seek out and wait for unique, quality experiences.
  • Quality as a Differentiator: In a market saturated with quick-service options, HeyTea’s focus on high-quality, freshly brewed, and uniquely presented products helped it stand out, demonstrating that consumers are ready to prioritize quality over speed.
  • Cultural Resonance and Innovation: The introduction of cheese tea not only leveraged traditional Chinese tea culture but also innovated upon it, showcasing that blending tradition with creative modern twists can resonate deeply with young consumers.

HeyTea’s journey from a small tea shop to a national phenomenon encapsulates the dynamic interplay of innovation, marketing savvy, and a deep understanding of consumer desires, setting a benchmark for others in the beverage industry and beyond.

Lessons from Failures

Case Study: Dolce & Gabbana’s PR Crisis

Background: In 2018, Dolce & Gabbana planned a major fashion show in Shanghai. However, promotional videos and comments made by the founders were perceived as racially insensitive by many in China, including Gen Z, leading to a massive backlash and cancellation of the event.

Image Credit: The New York Times

This failure highlights the critical importance of cultural sensitivity and awareness. Brands targeting Gen Z must understand and respect their audience’s cultural contexts and values, as Gen Z consumers are particularly attuned to social issues and brand ethics.

Future Trends and Predictions

Emerging Trends

  • Sustainability and Eco-Friendliness: Gen Z’s preference for sustainable and eco-friendly brands will deepen as environmental concerns continue to rise. Brands that invest in sustainable practices and transparently communicate their environmental impact will gain favor.
  • Enhanced Personalization through AI: Artificial intelligence will play an increasingly significant role in offering personalized shopping experiences. From AI-curated shopping lists to virtual fitting rooms, these tools will tailor the consumer journey to individual preferences and behaviors.
  • Virtual and Augmented Reality Shopping: With advancements in VR and AR, immersive shopping experiences will become more mainstream, allowing Gen Z to explore products and environments virtually before making purchases.
  • The Rise of Social Commerce: Social media platforms will evolve beyond branding channels to become integral shopping venues, leveraging live streams, social storefronts, and peer recommendations.
  • Health and Wellness: Health-conscious products, including wellness apps, fitness gear, and healthy food options, will see increased demand as Gen Z continues to prioritize mental and physical well-being.

Economic Influences on Gen Z Consumer Behavior

As we look to the future, the economic landscape will continue influencing Gen Z’s consumer behavior significantly. The rise of what has been termed the “stingy economy” reflects a shift toward more economically cautious spending habits. This trend is not merely about spending less but seeking greater value and efficiency in expenditures. Platforms like Xiaohongshu and Douyin have become crucial in this shift, allowing Gen Z consumers to meticulously research and compare prices before purchasing.

Emerging Lifestyle Trends:

  • Value-for-Money Lifestyle: Increasingly popular among Gen Z, this trend focuses on maximizing the value received from purchases and experiences, driven by a pragmatic approach to spending.
  • Lazy Health: This trend signifies a growing preference for low-effort, high-impact health and wellness activities, such as ensuring adequate sleep and engaging in stress-free physical activities.
  • City Walks and Special Forces Travel: These trends reflect a desire for experiences that require minimal investment but offer maximum enjoyment and relaxation, aligning with the broader shift toward economic leisure activities.

Predictions on how these trends will shape future marketing and product strategies:

  • Brands must integrate sustainability into their core operations to attract eco-conscious consumers.
  • Marketing strategies must increasingly rely on data analytics and AI to deliver hyper-personalized communications.
  • Companies should invest in AR and VR to create compelling, interactive marketing campaigns and shopping experiences.
  • Social commerce will necessitate strategies that effectively engage influencers and leverage user-generated content to drive sales.

Adapting to Change

Strategies for Staying Relevant:

  • Continuous Innovation: Regularly updating product lines and experimenting with new marketing tactics to keep pace with Gen Z’s evolving tastes.
  • Feedback Loops: Implementing real-time feedback mechanisms to gather insights directly from Gen Z consumers and quickly adapt products and campaigns.
  • Collaborative Engagements: Partnering with Gen Z influencers and thought leaders to co-create content and products that resonate authentically with the demographic.

Importance of Agility and Continuous Learning:

  • Agility in Business Practices: Being agile means more than reacting to trends; it’s about anticipating changes and being prepared to pivot strategies swiftly and efficiently.
  • Emphasis on Continuous Learning: Staying informed about technological advancements, cultural shifts, and consumer behavior patterns is crucial. This includes ongoing education and training for teams to remain adept and responsive.

Understanding and adapting to emerging trends is vital in a world where change is the only constant. For marketers and product managers targeting Gen Z in China, staying ahead means embracing a culture of innovation, maintaining agility in strategic planning, and committing to continuous learning. By doing so, they can ensure their brands remain relevant and appealing to this dynamic and influential consumer segment.

guide-to-gen-z

The Imperative of Understanding and Adapting to Gen Z Consumers in China

Gen Z consumers’ dynamic and ever-evolving characteristics in China underscore a pivotal challenge and opportunity for brands aiming to thrive in the modern marketplace. This demographic defines their consumption patterns and setting trends that influence the global economy. 

For brands, understanding and engaging with Gen Z is not merely about tapping into a new customer base but about aligning with the future of commerce itself.

Gen Z’s unique blend of digital savviness, ethical consumerism, and preference for personalized and immersive experiences demands a rethinking of traditional marketing and product strategies. The brands that successfully captivate this audience demonstrate authenticity, innovate continually, and leverage the latest technologies to create engaging and meaningful interactions. Moreover, the responsiveness to environmental concerns and the integration of sustainability into core business operations are becoming non-negotiable aspects that can significantly sway Gen Z’s loyalty and advocacy.

Therefore, brands that anticipate and adapt to Gen Z’s needs position themselves for increased market share in the present and set the groundwork for sustained relevance and success as this demographic matures. 

The stakes are high, and the brands that effectively decode the preferences and values of Gen Z will likely lead the charge in shaping the future economic terrain.

To deepen your understanding of Gen Z’s impact on global markets and to refine your strategies accordingly, we invite you to download our exhaustive global Gen Z report. Gain detailed insights and practical guidance to harness the potential of this crucial demographic. 

Access the report now at The Definitive Guide to Gen Z.

This comprehensive report is invaluable for any business leader or marketer aiming to make informed decisions that resonate with Gen Z and propel their company toward long-term success.