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Internet the key vehicle for nationalism in China: study
by David Blecken
13-Nov-08, 12:57
SHANGHAI - The internet plays a key role in driving nationalistic sentiment that is potentially detrimental to foreign brands in China, according to a new study conducted by Ogilvy China's trend research unit Discovery and Millward Brown.
The research, which canvassed a total of 900 Chinese citizens aged 16 to 45, found that the web had been the most significant source of awareness of the recent hostility towards foreign companies such as Carrefour and CNN. The findings showed that the gap between awareness of and participation in an event was narrowed online, with almost two-thirds of respondents stating they had taken part in the nationalistic ‘I heart China’ campaign on MSN at the time of the furore.
In times of nationalistic fervour, Chinese brands were likely to see an increase in purchase intent among consumers, the survey suggested. A section of the participants, when reminded of the recent nationalistic activities and asked which brands they were likely to purchase in the near future, showed less interest in Carrefour and Louis Vuitton (respectively 7 and 8 per cent less than their counterparts not caught up in the situation). Meanwhile, Chinese skincare brands such as T-Joy and Dabao became more appealing by 7 and 8 per cent, respectively.
But while Chinese consumers appear to favour Chinese products in principle (84 per cent vowed to increase their consumption of domestic brands), the survey showed quality and price to be the most important factors in a purchase decision, above national origin. Particularly for higher-priced goods, foreign brands were shown to be preferred. Knowledge of the origins of certain brands also appeared to be shaky: 26 per cent believed Olay to be Chinese.
While Kunal Sinha, executive director of Discovery, said the report underscored the need for companies to be well prepared in order to tackle nationalistic surges, Millward Brown Shanghai managing director Jason Spencer noted that the findings highlighted the potential to prosper in a “fluid environment” by effectively harnessing the internet.
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