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Do chinese consumers have an environmental conscience?

by Ashok Sethi , 05.05.2015

To start with it is evident that Chinese consumers like everywhere else in the world reflect a consumption pattern that is governed by their beliefs, values and ideals. In a research conducted by GfK in 23 countries, 72 % of the Chinese consumers claim that they only buy those products which match their values, beliefs and ideals.  In fact the ardor of this expression is one of the highest in the world and the Chinese consumers seem to surpass the consumers in most developed countries in the intensity of their expressed emotion.

That concern for the environment is among these guiding values is clear from the fact that Chinese consumers in most research studies, as in this one, avidly proclaim a strong environmental conscience and also demand responsible behavior from companies. 73 % of them (7th highest among the 23 countries studied) say that they are plagued by guilt when they indulge in an environmentally unfriendly manner. Their demand from brands and companies is even more exacting - 80 % of them feel that brands and companies have to be environmentally responsible. Here again the Chinese consumers are ahead of most developed countries in their standards.

The key question, of course, is will the Chinese consumers pay a premium for an environmentally friendly product? On this the results in the market so far have been disappointing and there is no evidence of consumers paying more for an environmentally friendly product - as we see them paying for a safe product. Chinese mothers are buying infant milk formula and other baby products from all over the world at the highest prices. However they don't seem to reflect a similar enthusiasm for products which are less of a strain on the environment. Tesla, the premium fully electric car, which has become an environmental badge in the U.S. seems to have had limited traction on the Chinese roads so far. Even in terms of common environmentally friendly practices such as shunning plastic shopping bags or buying products with reusable or light packaging the Chinese consumers are not really holding a beacon to the rest of the world.

What do marketers and policy makers need to bridge this gap between espoused values and actual behavior? The key to achieving this is to link the desired positive behavior to a clear consumer benefit. Consumers seldom pay to assuage their conscience, but invariably do when they see a clear and meaningful benefit. Less pollution and safer environment are clear candidate benefits that can be dangled in front of the consumers.  Benefits don't just need to be functional or tangible - emotional benefits could also hold a powerful sway. The related emotional pay off in this case could be potent - particularly if it relates to the long term protection and health of their children. Chinese consumers will pay if they feel that the premium more desirable behavior that they pay today will create a better and safer world for their children tomorrow. The key to a more desirable behavior and premium for environmentally friendly products lies in converting the guilty consumer conscience into a powerful emotional benefit that the Chinese consumers can identify with.”

About the Writer

Ashok Sethi is Managing Director, GfK Consumer Experiences China. He has over 25 years of experience in market and social research in China, Hong Kong, India and other Asian countries, with extensive experience in both qualitative and quantitative research and in sectors as diverse as FMCG, Business and Finance, Telecoms, Automotive and social marketing.

In the current role, Ashok is responsible for adoption and use of appropriate research methodologies and analytical tools, to ensure the extraction of meaningful and actionable insights.

About the study

For the survey, GfK interviewed over 28,000 people aged 15 or older in 23 countries, either online or face-to-face, in summer 2014. The countries included are Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Poland, Russia, South Africa, South Korea, Spain, Sweden, Turkey, UK, Ukraine and USA.

About GfK

GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000 market research experts combine their passion with GfK’s long-standing data science experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers’ experiences and choices.

For more information, please visit GfK corporate website www.gfk.com
or GfK China pages www.gfk.com/cn

Follow us on Sina Weibo: @GfK_CRC

WeChat: GfK-China

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