Preference of Foreign Brands amongst Chinese People

The acceptance of crops of orthogonal store by Chinese consumers is with a literal enthusiasm and due to various seasons expose whole step, straightforward reputation, great diversity of choice, to a greater extent(prenominal) than engaging appearance, a feeling of liberty, sassy arrivals and so on. During the modernistic period everything that has a inappropriate name had to be of salutary quality, spunky price, and all those who consumed these products were regarded as sizable and refined. This research paper consists of four chief(prenominal) spells. Initially, we study it is necessary to present the growing of external inciters in chinaw be, which bring home the bacons us to pass on an all overview of the context of our research.The second kick downstairs leave behind be devoted to the presentation of he ideaual framework of the issue of orthogonal stations. Then, we give trace the development of wasting disease in china. Last scarcely not l east, we propose, from all our lectures, methods of the research to solve our problem. We will conclude with the presentation of the contributions of our research and considered prox developments. BODY 1 . The evolution of the orthogonal soft touchs in chinawargon The Chinese prudence was causeized by shortages, due to insufficient home(prenominal) production before the segmentation 1979 (Guy, 2005).Indeed, during the ethnical Revolution (1968-1978), ration tickets go through been distributed to buy products in mainland China. Obviously, it was impossible for the Chinese to misrepresent a choice among competing brands. After 1979, a reform and opening policy to follow up on fully in construct a modern economy allowed all industrial sectors to start prodigious growth. At that time, to a greater extent outside companies come failed to penetrate because of their neglect of acquaintance of the Chinese trade and topical anaesthetic anesthetic habits, but remote b rands re principal(prenominal)ed very attractive for Chinese. However, the price of outside(prenominal) products was so noble that average employees could not afford them.In 1990, many an(prenominal) Chinese have expressed a genuine enthusiasm or contradictory products, from car to food and clothing. By get a product that bears a economic famous name, Chinese consumer achieved a part of their dream. Some even saved measuredly to be able to buy exotic products. With the deepening of reform and opening up the economy and improving the investment environment, special(a)ly with its entry to WTFO, the enormous Chinese food market has attracted more and more unlike products in China, and attracts more strange companies coming to invest.The pattern of applications for registration and post registrations is increasing, so is their semblance in the annual applications comp bed to all brisk brands. In 1982, applications for registration of abroad brands accounted for 8. 4% w ith 1 565 applications. In 2002, i year after the formal accession of China to the WTFO, they increased by 25. 2% over the previous year to r distributively the mo of 50 902, which stood 13. 7% of applications. Before 1979, liquid ecstasyly if 20 irrelevant countries and territories had registered trademarks in China, for a total of 5130 recordings.At the end of 2003, the hail of countries and territories reached 129 and the number of registrations was 361 795, as 71 times more. The correspondence of the cumulative number of extraneous trademarks registered in relation to the total rose from 15. 7% in 1979 to 18. 3% in 2003, representing a growth of nearly three points (1). At the same time, Chinese consumers like outside(prenominal) products because they demonstrate a high(prenominal) lifespan quality. Thus, approximately remote products with special character atomic number 18 still quite requested.For example, European or Ameri dejection clothing be still in vogue, and very high-end orthogonal products are the modern trends in lineament in China. According to a necessitate cited lately by the Financial Times, China is the third oral market for prodigality products with annual sales of two cardinal dollars and growth prospects annual 20% until 2008 and 10% up in 2015 (9). The lure of foreign brands on consumer behavior is a igneous topic. It is commencement studied in the books in terms of brand scheme to be meeted by enterp formulates (non- domestic customers).Motormen & Sharking (1998, (10) have noted three principal(prenominal) points to sympathize 1 . How consumers in each hoidenish consider the choice of brands, 2. How they judge them, 3. The different involve that drive their purchase decision. In a context of globularisation of markets, there are many studies roughly the alternatives f a market strategy, barised or local anestheticized, which derives the question of a branding strategy standardized (global) vs . brand qualified (Seafarer, 2002 (5) , Roth, 1992 (1 1), and 1995 (12)).Research shows that it is of the essence(p) to identify potential obstacles, for example, slightly national characteristics, in the parade of growth a global brand. Before feeling at the nurture of a particular brand in a accustomed market, it is excessively necessary to know the sensitivity with which consumers of this market consider the brand in general, and then this brand in particular. 2. The model of country of neckcloth and its make on consumer behavior Indeed, much has been said and scripted about the role of country of line of merchandise on the intuition, evaluation and choice of foreign products.However, the effect of base on brand has rarely been studied, and only in recent years it becomes an enkindle subject for the researchers, with the rise of a movement that believes that the congruence betwixt these two variables is more important than their effects taken separately (Airier and Fort, 2005). Our research in functions to adopt this congruence approach to get around actualise the typic appraise and the practical nurture of the country of line of work in the recognition of foreign brand by Chinese consumers. There are a littler number of researches studying the problem of countries of origin in the context of evolution countries.Bator & AAA. (2000 (3)) showed that consumers in these countries perceive the country of origin as a factor indicating not only quality but in any case mixer determine symbolical, and they give preference to trademark non-local compared to local brands. However, these proposals were rarely tested by empirical work. The study of Bator & AAA. 2000) among Indian consumers is an important reference on this point. Their results showed that consumers in developing countries have a more well-fixed attitude towards brands perceive as non-local, and for moderatenesss that go beyond evaluating the quality of the brand.Accordi ng to the authors, non-local brands are regarded as symbols of prestige, at least by accepted categories of consumers and for categories of products with high symbolic economic value. These consumers are order as those with a high decimal point of standard setting influence, one of the main influences that a reference group has on n individual. This group admires the lifestyles of economically unquestionable countries. It is interesting to note that the brands are broadly speaking presented as non-local and non- associated with a given country, as in another(prenominal) more conventional research on the effect of country of origin. In sum, the study Bator & AAA. Mongo consumers in India provides us with the starting signal clues for further research on the perception of foreign brand by consumers in developing countries. In this research, an interesting feature of Chinese consumers towards foreign brands in a caller in enactment is explored. Basing on this literature revi ew and its limitations, we puke assume that cultural orientation ordure influence consumer attitudes towards foreign brand in a exacting way. Cultural values are considered as determinants of attitudes and behaviors and provide a more stable and domestic-oriented consumers (Kumara and Novak, 1992 (5)). . The Chinese grow and white plague of foreign brand 3. 1 The traditional Chinese refining and use of goods and services of foreign brand The presentation of some of these principles will help us agnise a better understanding of the behaviors of Chinese mass. Some chemical elements or values are reckoned, promoted and implemented in everyday life, including how to engage a brand. The features are introduced below -The first feature of Chinese society is the corporate nature The Chinese will gravel more easily to the standards of group than people in individualistic societies.An essential element in Western culture and consumer behavior, the passion to distinguish themsel ves, is also in China. It assumes a difference as a share of one group over other group, while respecting individual standards of his group. We therefore believe that the consumption of the product of reign origin is rather symbolic other than utilitarian to correspond to amicable status. Imitation is also a behavior used for recognition as a member of the group. Moreover, it is self-explanatory that luxury products are well interchange in China in recent years.This means that the brand is in the process of buying decision because it meets the needs of beneficial favorable status than personal needs (Guy, 2005). -The second characteristic feature is the fancy of complaisant interaction The relationship of religious belief leads the development of interpersonal relationships that underpin the surgical procedure of many Chinese. The behaviors of Chinese consumers are more easily influenced by the existing commit amid people who have a good personal relationship.It is ass umed that the recommendations and comments from others short-change a very important role in the choice of brand. The Chinese consumers tend to regard the brand as part of their social life and their relationships to others. The convert of gifts is considered as the most direct and most microscopic to cultivate social interaction. The way a person respects and implements the complex rules of gifts exchange is an essential element in assessing the social position of that person. For example, luxury products and international brands that can be gifts are well interchange in China in recent years. The third feature is the concept of self-conceit In Chinese tradition, the concept of elf-esteem refers to the debt instrument of reciprocity. It is important to give oneself a official degree image, reflecting his role, his status and is in line with the traits that respect his group membership Len view of the higher price and ostentatious function of the international brand compared to the local brand, consumers choose brands which is trump known locally and do not want to take the sis of using up money for these brands anonymous on the market (Lu, 2004 (8)).The reputation of the brand foreign in domestic market is required for the reason of saving face. 3. 2 The modern Chinese culture and consumption of foreign brand The attitudes towards international brands of Chinese consumers are influenced by modern Chinese culture as well as traditional one. Specifically, modernity, spring chicken, achievement and wealth allow Chinese consumers to cover greater importance to the brand, to develop a preference for foreign brands since it itself can wee-wee a social and symbolic human beings (Lenitive and London, 1997 (7)).Modern consumers have more ways, consume more symbolically they look for products with brand, either for their good quality or value for signs of the brand through research statute. Western demeanor influences consumer behavior of young Chinese. The admiration of the quality of life of developed countries exerts a confirming influence on the attitude towards foreign brands. The relationship of Chinese consumers with foreign brands, which includes some(prenominal) aspects, manifests itself in a more or slight depending on different social backgrounds, different categories of people.Elements such as age, sex, precept level, and the tankard of lively Certainly seem to influence the perception of foreign brands. A global study published by accentuate shows that to attract Chinese consumers increasingly nice to foreign brands, companies must adjust their marketing strategies to the preferences of three categories of clientele. So the golden youth, I. E. Young urban graduates, mostly women, who have a high standard of living and significant interest to the foreign brands is the first category with the most potential.According to the study, consumers in this class are two times more likely than others to only to buy virgin brands (28% against 14% maximum for others), but also to be the first to test (43% against 32% maximum). The other two categories are, on the one hand, ambitious, young people who are sensitive to brands and covet the latest and exceed products, but whose incomes do not allow them to realize their dreams. On the other hand, high income, who are also looking for exclusive products at the cutting edge of technology, but unlike the former, deserve the brands (14). 4. Guidelines for the management of foreign brands in China Practical ValueNumerous studies on the problem of country of origin are interested in the influence of this concept on consumer preferences, and more specifically, preferences for foreign products or domestic products. The research in this battlefield has highlighted a trend among consumers in developing countries to prefer foreign products to domestic products because of the favourable position of foreign products in terms of quality. ample accustomed to basic products and very brusque quality, Chinese consumers welcome these products of foreign origin with an enthusiasm, which may explain a better quality of these products.We therefore believe that the greater the perceived quality gap among the local brands and foreign brands is, the more Chinese consumers are sensitive to foreign brands. typic Value The importance of symbolic value tends to increase when society evolves socio economically from a low level to a higher level (Supplely and Garenough, 2003 (13)). The Chinese consumers immediately are looking for brands capable of playing not only utilities functions but also symbolic functions and give them greater importance.The value of symbols and social standards of Chinese culture invites us to assume that it esters the perception of foreign brands by Chinese consumers. We also assume that the differences of the perceived symbolic value between local and foreign brands exert a positive influence on the perception of foreign bra nds. 4. 2 Perception of foreign brands desegregation of foreign brands in the Chinese culture The Chinese cultural characteristics influence the behavior of Chinese consumers.More precisely, Confucianism (the collective nature, the concept of social interaction, the notion of the self-esteem and modern Chinese culture exert a positive influence on the perception of foreign brand. Segmentation of the Chinese market In addition to the cultural differences that characterize Chinese consumers, their attitudes and behaviors appear closely related to other factors such as age, sex, education level, the standard of living Indeed, the evolution of the perception of foreign brand in China takes place at a very fast pace.This can create significant differences between groups of people more or less susceptible to the effects of opening up the country, for example, between cities and rural areas, between generations For the foreign firm, it is essential to find segments of Chinese nonusers w ho are more sensitive to brands. The impact of contention China is entering a new phase of its economic development during which the foreign brands are no longer in the same position visit--visit the Chinese consumers. The local competition may exert a negative influence on the perception of foreign brands.The Chinese brands have make progresses and become competitors for certain foreign brands. go about with the improving quality of domestic products and the due date of Chinese consumers, foreign companies must understand the symbolism of consumption that is implanted in the mind of Chinese consumers as a fundamental element of Chinese culture. In summary, the situation of foreign brands in China and Chinese consumer behavior visit--visit foreign brands are discussed in this paper. The Chinese preference to foreign products seems to be an interesting feature in a society in passageway to consumerism.The phenomenon of foreign brands in China appears clean different from what is often addressed in research in marketing, because of the complexity of the market situation and cultural characteristics of todays Chinese society and consumer behavior, closely related to the combined experience of generations of Chinese. Together with globalization and integration of markets, foreign investors wishing to work in China have to be aware of this reality. To have a good strategy of building brand image, it is important to understand the symbolic values of prestige required by the Chinese.To attract Chinese consumers, our study suggests several(prenominal) options to highlight differences in terms of product quality and in terms of the symbolic value of brands to strengthen orientation to Confucianism and to the solution of modernity and youth linked to consumption to emphasize the importance of segmentation for the Chinese market to emphasize the difference in hooch between categories of products with high symbolic value and low symbolic value and at last to identif y new constraints imposed by local competition.Finally, we desire that this study makes a contribution to knowledge about the management of the brand in general and on the issue of foreign brands in the Chinese market in particular.