Page 32 - BrandZ Top 100 Most Valuable Chinese Brands 2015

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Source: BrandZTM / Millward Brown
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Part1 | Introduction-MarketDynamics MARKET DYNAMICS | Trust
TOP 100 Most Valuable Chinese Brands 2015
Consumer trust in brands
stabilizes but remains low
After a period of decline, Chinese consumer trust in brands has stabilized. Trust isn’t rebounding, but it doesn’t seem to be weakening further. About one-third of consumers regard brands, whether Chinese or multinational, as trustworthy.
Erosion of consumer trust is
a global issue, compounded in China by a series of highly publicized product safety problems, particularly a food scandal in 2008. As trust declined, it became a central factor in purchasing decisions. Today, over three-quarters
of Chinese consumers say that trust has become more important to them.
Not surprisingly, trust declined most in categories that experienced safety problems, such as milk and other dairy products. At the same time, trust increased in other categories. In insurance, for example, brands have matured and improved the training of agents.
The erosion of trust has leveled in China...
After a period of decline, consumer trust in brands has stabilized. Trust isn’t rebounding, but it doesn’t seem to be weakening further.
37% Top 50 multinational brands in China Top 50 Chinese brands in China
% of consumers who think the brand is trustworthy
34%
36% 32% 33%
33%
32% 32% 32%
2010 2011 2012 2013 2014
... The erosion of consumer trust is a global issue...
... Trust is an important factor in choosing brands...
Over three-quarters of Chinese consumers say that trust has become more important to them when selecting brands.
... Trust declined in some categories, rose in others...
Trust declined most in categories that experienced safety problems. At the same time, trust increased in other categories.
Consumer trust is weak in the UK and the US, although the trust level has leveled in the UK.
Category Trust Decrease
BEERS
DAIRY AND MILK PRODUCTS FAST FOOD
ONLINE SHARING & NETWORKING MINERAL WATER COOKING OIL
CARS
Trust depends on the
interplay of category and 27%
brand, according to the 26%
BrandZTM TrustR studies, 25%
which measure consumer 24% trust in a brand over time and 26%
willingness to recommend it
based on recent performance. 25%
Consumers expect brands 25%
to be most trustworthy
in categories that require
uncompromised reliability,
such as baby care and airlines.
2012 2013
24%
21%
Q: We have seen a lot of brand quality and safety issues nowadays in China, when you choose a brand, how important is it to choose a trustworthy brand?
More and more important As important as before Less important than before
Source: Millward Brown Trust Study with Lightspeed Research
Brands in the UK Brands in the US
24%
% of consumers who think the brand is trustworthy
2010 2011
2014
33%
Importance of Trustworthiness when Choosing a Brand
4%
Trust Change by Category 2010 vs. 2014
Category Trust Increase
MEN’S APPAREL FACE CARE
BODY CARE
ORAL CARE BANKING GROCERY STORE SPIRITS DETERGENTS INSTANT FOOD INSURANCE MOBILE PHONE HANDSETS
Source: BrandZTM / Millward Brown
18%
78%