Retail in Asia

In Shops

China’s brand loyalty expected to grow strong

Chinese consumers will develop stronger brand loyalty in the coming decade, says McKinsey in its latest consumer behaviour forecast.

Calling the new trend good news for companies, Max Magni, a McKinsey principal based in Hong Kong, said that as brand stickiness increases, companies should de-centralise their decision-making structures to make the best of an increasingly disparate group of consumers as well as the country’s distinctive regional markets.

McKinsey’s studies showed the percentage of respondents in mainland China who stick to their preferred brands rose from 21 in 2009 to 23 last year. It is estimated that by 2020 the figure will be between 30 and 40 percent, comparable with developed markets. It is currently 34 percent in the US and 33 percent in the UK.

To view the full article (note: you must be an scmp.com subscriber), visit scmp.com. (From seven days after publication, this article will appear in Archive Search.)

(Source: scmp.com)