Epsilon powers business results for the world’s leading marketers, using customer intelligence to ignite connections between brands and customers with solutions that integrate rich data, engaging creativity and robust technologies. Each year we conduct proprietary consumer research across China to gain customer perspectives on topics that matter to brands. In this year’s study, we sought to explore Chinese consumer experience: the connections with brands they value the most, and the impact of those connections on purchase behaviors. We looked at how Chinese consumers engage with brands, with an eye toward helping brands build and benefit from positive consumer experiences. Covering clothing, grocery, financial services, travel, luxury, restaurant, eCommerce, appliance, food and beverage, and consumer product sectors, Epsilon’s research examined in depth how China’s consumers engage with brands across numerous touchpoints and channels.
2. About the study
Epsilon powers business results for the world’s leading marketers, using customer intelligence
to ignite connections between brands and customers with solutions that integrate rich data,
engaging creativity and robust technologies. Each year we conduct proprietary consumer
research across China to gain customer perspectives on topics that matter to brands. In this
year’s study, we sought to explore Chinese consumer experience: the connections with brands
they value the most, and the impact of those connections on purchase behaviors. We looked at
how Chinese consumers engage with brands, with an eye toward helping brands build and benefit
from positive consumer experiences. Covering clothing, grocery, financial services, travel, luxury,
restaurant, eCommerce, appliance, food and beverage, and consumer product sectors, Epsilon’s
research examined in depth how China’s consumers engage with brands across numerous
touchpoints and channels.
Our survey results are based on data from 1,000 respondents in 29 Tier One and Tier Two cities,
weighted to the age, gender, and geographic distribution of the population. More than half of
the respondents earn more than RMB10,000 per month, and about a quarter earn more than
RMB20,000 per month. More than half had undergraduate degrees or higher. The research was
carried out via online channels and face-to-face interviews in August 2015.
The always-on Chinese consumer experience 2
3. In Epsilon’s Spring 2015 report People’s Choice: A View into Chinese Customer Loyalty,
we looked at the increasingly sophisticated and loyal Chinese consumer. Conducted as
a follow on, this research on consumer experience in China adds color, depth, and detail
to the task of understanding what these passionate shoppers want to feel, see, and know
about brands. By asking what brands consumers interact with most frequently, what
factors create the highest levels of satisfaction, and what actions they take to engage
or disengage with brands, we gained insights to help brands win the hearts of Chinese
shoppers.
A picture emerges in which brand interactions are sought and welcomed through the
full consumer journey spanning discovery, loyalty, and advocacy. As the nation steams
through its fourth consecutive decade of development and into increasing maturity,
Chinese consumers are in a phase of active desire to explore, understand, and affiliate
with brands. Marketers working toward higher levels of engagement will be wise to
study not only the overall climate for consumer experience in China but also the specific
patterns of each sector and segment.
“To achieve sustainable gains in the China market, brands need to offer
enhanced consumer experience, through the right channels. Chinese
consumers now expect more than a quality product. They want to feel
a personal connection with their favorite brands on multiple levels.”
— Vivien Deng, Director, Client Services, China, Epsilon
The always-on Chinese consumer experience 3
4. Key findings
72%
of respondents are
online throughout
the day
3.4
average number of
different eCommerce
brands that consumers
interact with regularly
1. Our consumer loyalty report highlighted the I-Want-It-All appetite of Chinese
consumers. This consumer experience research unearths more evidence of a
passion for shopping in full bloom, nourished by vast and beloved eCommerce
platforms like Taobao, JD, and Tmall. Accumulated experiences with the
convenience, variety, accessibility and service levels of eCommerce platforms are
shaping not only behaviors, but also expectations and standards for companies
in all sectors.
To dimension the role that eCommerce plays in consumer experience, the report
delivers these salient data points: 72% of respondents are online throughout the
day; the top factor for brand satisfaction is “always available;” two of the three
top of mind brands are eCommerce platforms; and consumers interact regularly
with an average of 3.4 different eCommerce brands.
2. Although online shopping sites are part of most consumer journeys and the
preferred point of sale for many sectors and demographics, consumers in China
still want to interact with their preferred brands through multiple channels.
Out of fifteen channels listed in our questionnaire, eleven are accepted by more
than 15% of Chinese consumers. At higher income levels, the engagement is
broader; between nine and twelve channels – depending on the sector – are
accepted by 20% or more of these consumers.
2 of 3
“most widely
recognized” brands are
eCommerce platforms
The always-on Chinese consumer experience 4
5. 3. Findings about what motivates consumers to share personal
information with brands highlight just how open they are to exploration,
understanding, and affiliation with brands. Most encouraging for
marketers is the level of enthusiasm for brand interaction.
Since the top two responses are priority customer service (57%) and
exclusive deals (53%), it’s clear that granting “apart-from-the-crowd”
status can open the door to a closer brand relationship. According to
the survey, tactics such as experiential rewards, point-based loyalty
programs, VIP perks or even a clear promise on privacy – would be
effective for obtaining personal information from somewhere between
one third and one half of consumers.
Effectively obtain personal information
by using one of our suggested tactics:
Experiential
rewards
Point-based
loyalty
programs
VIP perks Clear promise
on privacy
57%
Priority customer service
53%
Exclusive deals
Top two responses for what motivates consumers to
share personal information with brands:
The always-on Chinese consumer experience 5
6. “China’s consumers can browse and buy
from world-class eCommerce companies
like Taobao, JD, and Tmall by day and get
up close to brands at countless, gleaming
shopping malls by night. For those
brands that can provide an extraordinary
experience, there are multiple opportunities
for engagement, including phenomenal
Word-of-Mouth.”
— Dominic Powers, Executive Vice President and
Managing Director, International, Epsilon
4. The brand relationship in China is based on and involves information, availability,
customization, and the consumer’s social and influence group. Alongside habits
of research and exploration, there exists a vibrant Word-of-Mouth culture.
High percentages of consumers said they would share their brand experience
with friends and family (65%), share with friends on social media (60%) and post
positive comments online (58%). Similarly, among factors for brand satisfaction,
64% of consumers rated these two group-oriented choices, “my friends interact
with the brand too” and “I can post comments online,” as important.
What other factors are important to your brand satisfaction?
64%
My friends interact
with the brand too
I can post
comments online
How would you most likely share brand experiences?
Share with friends
and family
Share with friends
on social media
Post positive
comments online
The always-on Chinese consumer experience 6
7. Wired and happy
Respondents tell us they interact most frequently with brands in eCommmerce (42%)
and Technology (35%), providing us with a lens through which to understand consumer
experience in China overall. That is, by providing the place to research and purchase all
manner of goods and services, the website and the phone are enshrined closest to the
hearts of China’s consumers, comfortably outranking the brands of products themselves.
This finding is consistent with Epsilon’s Spring 2015 report which found that 61% of survey
respondents pledged their loyalty to e-commerce brands, far more than the number of
respondents who said they are loyal to a retail or consumer brand.
Gone are the days when China’s retail landscape was dominated by single brand shops
like Nike or Christian Dior. Shoppers in China now spend end their time where they can
wander at will through a digital universe that has, quite literally, everything.
Clothing and Shoes, where fashion and function meet, was ranked third, with 25% of
consumers telling us they interacted most frequently in this sector. In fourth place, where
sustenance and social life meet: Food & Beverage, with 21%. A picture emerges in which
shoppers are closest to the brands that serve a desire to explore and enjoy.
Chinese interact most
frequently with brands in:
eCommerce
Technology
Clothing
Food & beverages
42%
35%
25%
21%
The always-on Chinese consumer experience 7
8. Brands interacted most often – by sector
25%
Clothing/
Shoes
1. Nike 9%
2. Adidas 5%
3. LI-NING 2%
21%
Food &
Beverages
1. Coca Cola 5%
2. Master Kong 4%
3. Mengniu Dairy 2%
13%
Skincare/
Cosmetic/
Personal Care
1. Blue Moon 1%
2. P&G 1%
3. L’oreal Paris 1%
1. Haier 2%
2. Midea 2%
3. GREE 1%
42%
Website/
eCommerce
1. Taobao 19%
2. JD 12%
3. QQ 10%
35%
Technology
1. Apple 14%
2. Samsung 12%
3. HUAWEI 5%
1. Alipay 2%
2. ICBC 1%
3. China Merchants Bank 1%
1. Wechat 5%
2. Weibo 1%
1. BMW 1%
2. AUDI 1%
3. Volkswagen *
1. China Mobile 3%
2. China Telecom 2%
3. China Unicom *
1. KFC 5%
2. McDonald’s 3%
3. Starbucks 1%
1. Carrefour 2%
2. Wal-Mart 1%
3. WU MART 1%
10%
Household
Electric
Applicances
6%
Financial
Services
6%
Social
Networking
10%
Restaurants
6%
Grocery/
Supermarkets
5%
Automotive
5%
Tele-
communication
Q1. Please name and rank the top 3 brands/companies that you have the most interactions with in the past 12 months. (open end question)
Weighted base: All respondents (N=1019)
Note: *Denotes less than 0.5%
Show sectors with 5% or above only
The always-on Chinese consumer experience 8
9. Overall satisfaction with top 3 brands – by sector
Regardless of sector, the vast majority of consumers in China are very satisfied with their favorite
brands. All twelve out of fourteen sectors covered by Epsilon’s research fielded brands that at least
66% of consumers were satisfied. Above all sectors, though no surprise to anyone who has followed
the meteoric and sustained rise of WeChat, social media shone with a satisfaction score of 84%.
Q2. Based on your experiences interacting with these brands/companies, please rate your overall satisfaction with each of these 3 brands/companies.
Please use a scale from 1 to 10 where 10 means “very satisfied” and 1 means “not at all satisfying”.
Weighted base: Respondents who mentioned top 3 interacted brands in respective sector
Note: Show satisfaction (T38) % for
categories with n >30
Social
Networking
84%
Skincare/
Cosmetic/
Personal Care
80%
Website/
eCommerce
76%
Technology
74%
Automotive
74%
Shopping
Centres/
Department
Stores
74%
Food and
Beverages
71%
Grocery/
Supermarkets
71%
Clothing/
Shoes
Retailers
70%
Household
Electrical
Appliances
69%
Restaurants
67%
Tobacco/
Alcohol
67%
Financial
Services
64%
Tele-
communication
54%
The always-on Chinese consumer experience 9
10. Star brands: Taobao, Apple, and
their rivals
When asked what brands they interact most with, consumers put Taobao on top. Named
by 19% of respondents, the Alibaba-owned eCommerce platform surpassed second place
Apple, which was named by 13%. Just behind, rival eCommerce brand JD and Samsung,
Apple’s competitor, tied for the third place. With astonishingly high satisfaction scores,
domestic tech, eCommerce and social media companies Huawei (84%), WeChat (82%),
and Tmall (82%) led the pack. In this landscape where electronic platforms are so critical,
advantage goes to domestic companies for both regulatory and cultural reasons. Yet the
growing love for Chinese brands seems to be a broader trend. A total of eight domestic
brands rank in satisfaction scores of 75% or higher, beating out Samsung, Coca-Cola and
KFC.
Brands Chinese interact most frequently with
Brands with high satisfaction score
Taobao Apple JD Samsung
Huawei
Wechat
Tmall
84%
82%
82%
19% 13% 12% 12%
The always-on Chinese consumer experience 10
11. China’s sprawling eCommerce landscape
Epsilon data uncovered that online-savvy Chinese consumers interact
regularly with an average of 3.4 different eCommerce brands. Why do
consumers shop across multiple online stores instead of gravitating to a
single platform? Let’s look at differences among the major players.
Taobao
Alibaba, which commands over 35% of C2C and the vast majority of
B2C eCommerce in China, offers multiple platforms catering to different
consumer needs. Somewhat like eBay, Taobao.com is an open and
relatively unsupervised market where small and large vendors sell
virtually anything a shopper could desire. Tmall is Taobao’s sister site,
where shoppers go for product authenticity and quality – for example
to purchase an Apple product. Tmall is not to be confused with Tmall
Global, which only accepts foreign merchants who ship products to
Chinese buyers from overseas.
JD
Jindong (JD.com) hosts thousands of official, tightly regulated B2C
storefronts – from Adidas to Louis Vuitton – constituting roughly 20%
of the B2C market in China. Jindong is positioned like the Chinese
equivalent of Amazon, a small player in China. Online shoppers know
that JD tightly polices stores to eliminate counterfeits and offers
excellent after-sales service. Although still significantly behind Alibaba’s
sales, Jindong’s revenues doubled over the past year in part due to its
commitment to sell genuine items online. Still, JD has a long way to
catch up to Taobao and Tmall.
Vertical platforms
Chinese shoppers seeking a wide selection of products within a certain
sector turn to dozens of vertical platforms. Students buying books at
the beginning of the semester often opt for DangDang, whereas moms
stocking up on food and supermarket products browse Walmart-
invested Yihaodian. Suning, known traditionally for their brick-and-
mortar stores, have become the go-to online platform for appliances
and home electronics. Other popular platforms include Vancl and Gome.
Niche platforms
Chinese shoppers access numerous niche platforms for specialty
shopping services. For example, Wanpinghui (VIP.com) is popular with
luxury shoppers seeking deep discounts, closing sales and after-season
markdowns. Yixun is the go-to site for electronics shoppers who rely on
product reviews shared by past buyers. The site also uniquely offers a
unique trade-in program.
Chinese consumers interact
regularly with an average of 3.4
different eCommerce brands
The always-on Chinese consumer experience 11
12. Website/
eCommerce QQ
78%
Iqiyi
78%
JD
76%
Baidu
78%
Tmall
82%
Taobao
76%
Youku
73%
Note: Show satisfaction (T38) %
for categories with n >30
Certain non-tech, non-Chinese brands still succeed in delighting
Chinese consumers. Global consumer marketing giants Adidas
and Nike, both in their third decade of selling in China, scored
well. Still, marketers in pursuit of deeper engagement with
Chinese consumers will need to consider programs that align
with the brightest performing brands: dominant Chinese
eCommerce, social media, websites, and device companies.
Technology
Lenovo
72%
Samsung
71%
Apple
79%
HUAWEI
84%
Mi
62%
Q2. Based on your experiences interacting with these brands/companies, please rate your overall satisfaction with each of these 3 brands/companies.
Please use a scale from 1 to 10 where 10 means “very satisfied” and 1 means “not at all satisfying”.
Weighted base: Respondents who mentioned top 3 interacted brands
Restaurants
KFC
70%
Social
Wechat
82%
Clothing/Shoes
Nike
74%
Adidas
77%
Satisfaction – brands with the most interaction
Telecommunication
China
Mobile
52%
Food &
Beverages
Master Kong
47%
Coca Cola
73%
The always-on Chinese consumer experience 12
13. Setting the “Always-on” Standard
It’s important to look carefully at the factors behind these high scores to find ways that marketers in
all sectors can create more satisfied customers. As caveat, however, where eCommerce platforms and
technology brands have such a hold on China’s consumers, it’s also likely that the experiences they deliver
are setting the standard for satisfaction in the market overall.
Respondents were asked to rate 12 factors for satisfaction. Among them, we might have expected “has
good product and service” and “has safe product” to top the list. But these placed as the fourth and fifth
most important factors.
The factor considered important for brand satisfaction by the largest number of respondents, at 69%,
was “available whenever I need them.” This finding confirms how the always-on experience provided by
eCommerce companies is shaping expectations for all brands. There were two other factors that Chinese
consumers said were more important than quality, service, and product safety: those are “consistent
experience” (68%) and “fun, entertaining interaction” (67%). In many ways, these top three factors anchors
the formula that China’s top websites, including eCommerce platforms, have mastered.
Factors considered most important for brand satisfaction:
Look again at the brands that won satisfaction scores over 75%:
search engine Baidu (78%), portal QQ (78%), entertainment site
iqiyi (78%) and streaming video site YouKu (76%) – all of them
deliver in the top three areas named by survey respondents for
high satisfaction.
A clear takeaway from the data on brand satisfaction: for any
brand chasing the hearts of Chinese consumers, write a sticky
note for the side of your monitor that says, “Be always on, be
consistent, be fun.”
available whenever
I need them
consistent
experience
fun, entertaining
interaction
69%
68%
67%
The always-on Chinese consumer experience 13
14. Factors for being more satisfied in interactions with brands/companies
with most satisfying experience (top 3 boxes)
Has good customer service/support 65%
Fun/entertaining interaction 67%
Consistent experience 68%
Is available when I need them 69%
Always find what I want/need online 61%
Could leave comments/reviews on its website 64%
My friends also interacts with them 64%
Makes safe products 65%
Communication received are personalized to my needs 56%
Knows me and treats me as valued customer 56%
Unique/distinct shopping experience 56%
Respects my communications/message preferences 58%
Has coupons or offers 55%
Always reachable via online/offline channels 56%
Like interacting via social media 56%
Customized communication time and method 56%
VIP perks and benefits for loyal customer 50%
Customized offers and experience based on
past purchases 51%
Has positive online reviews 53%
Earns rewards from purchase 53%
My idol is its spokeperson 38%
Personalized one-to-one customer service 48%
Keep in touch through preferred channels 50%
Earns rewards from interaction 50%
Q3: What makes you more satisfied in your interactions with brands/companies? Please rate the following statements, using a scale from 1 to 10 where 10 means “very much agree” and 1 means “not at all agree”.
Weighted base: Respondents who mentioned top 3 interacted brands
The always-on Chinese consumer experience 14
15. What is everyone talking about?
Social factors emerge strongly in the second tier, revealing how important it is for
consumers to feel part of a movement. The 64% of consumers who say it’s important
that “my friends also interact with (the brand)” are revealing key information about their
social environments. Namely, Chinese consumers openly share experiences with their
favorite brands. This is great news for marketers who can create the stories, activities,
and campaigns that lend themselves to online and offline buzz.
Another clue about the importance of talking about a brand is the high score (64%)
given to “being able to leave comments online.” Consumers don’t just want a private
experience of satisfaction, they want the option to be a tribe member, a critic, or an
influencer. Our survey data shows that the highest income consumers emphasize these
social factors even more intensely, giving scores of more than 70% to each.
Highest income consumers
emphasize social factors even
more intensely than others,
giving scores of more than 70%
to each.
The always-on Chinese consumer experience 15
16. Find out what your customers
care about
Data from our survey highlights differences among consumer segments. For example,
respondents with an undergraduate degree placed greater importance on “respects my
communication preferences”, “communications received are personalized to my needs”
and “has VIP perks for loyal customers” than the respondents overall.
Consumer satisfaction priorities vary by sector as well. In cosmetics and skin care, the
scores for importance of “makes safe products,” ”knows and treats me as a valued
customer,” “has coupons or offers,” “earns rewards from purchase” and “has customized
offers based on past purchases” were 15% or even 25% higher than scores for any other
sector.
Finally, Chinese consumers do seem to rate special treatment or status, and economic
incentives such as points or rewards, much lower than consistency and social aspects
when they think about satisfaction. But at the same time, our data from this survey tell
us that “personalized service” and “reward programs” work powerfully as tactics for
customer acquisition.
While our findings are rich with specific details for strategy and tactics, they are also
consistent on an overarching theme, which is unique to China among North Asian
markets: Chinese consumers openly welcome opportunities for brand interaction.
Consumer satisfaction
priorities vary by sector.
The always-on Chinese consumer experience 16
17. Channels with most brand interactions – Cosmetic
and skincare consumers
In-store
86%
Consumers’ touch
point preferences for
all sectors (average)
“Consistent experience” ranks #2 in the factors that are important
for brand satisfaction. Marketers need to create a consistent
image, personality, and voice across every channel that the
brand commits to, regardless of the media format and the type of
engagement that media is best suited for.
At the same time, consumers are interacting with their favorite
brands by browsing the brand website (52%); shopping in stores
(48%); checking out their advertisements (34%); shopping online at
the brand e-store (30%): getting information about them from the
internet (30%); shopping their products at eCommerce sites such
as Taobao and JD (29%); engaging with them on WeChat (28%); and
watching their videos online (25%).
To make the best use of finite financial and creative resources, it’s
wise to invest in a deep look at the channel preferences of the
targeted sector and consumer segment. For appliance brands,
consumers need to see the heft, the surfaces and constructions,
the full competitor choice. So the brick-and-mortar in-store
experience carries a much higher impact than the e-store, the
company website, or an eCommerce site. Shopping for cosmetics
and skin care – intensely personal, intimate, and expensive,
requiring proof of performance and appeal to aspirations – calls on
the consumer to weigh the pros and cons at many touch points.
eCommerce
48%
43% 29%
Advertised
Anywhere
45% 34%
WeChat
36% 28%
Connect to your customers
via the right channels
Cosmetics and skincare
consumers’ touch point
preferences
vs
The always-on Chinese consumer experience 17
18. WeChat official
Subscription
account
Email
SMS / text
message on
mobile phone
Mobile App
Product review
website
Company
website
In-storeWeibo news
feed
Weibo official
account
QR code
WeChat official
service account
Preferred channels to interact with the most interacted brands/companies
40%
27%
21%
21%
21%
21%
20%
19%
17%
16%
16%
Q4. In what way(s) do you usually interact with the brand/ company that you interacted with the most? Please select all that applies.
Weighted base: Respondents who mentioned top 3 interacted brands
The always-on Chinese consumer experience 18
19. Rising sophistication:
from brand encounters to
brand relationship management
Online shopping rules the hearts of sophisticated Chinese consumers, who want to be
able to find and order anything, anytime. Yet more respondents picked In-store (40%)
than any other channel as their favorite way to interact with brands. A closer look at the
data points to in-store as a key channel for clothing and shoes, grocery, cosmetics, and
appliance sectors.
At lower incomes and education levels, and among Tier Two shoppers, although internet
research on brands is common, in-store dominates. These consumers seek to encounter
brands in person, picking up tactile and contextual cues that flesh out web-based
descriptions. Middle income consumers spend more time seeking information online,
especially through browsing of company websites, to understand brands. Higher income
consumer experiences, by comparison, aim to manage their relationships with brands.
By spreading their brand interactions over a wide variety of engagement behaviors such
as seeking information on the internet, following brands on WeChat and Weibo, watching
videos, and joining loyalty programs, the more sophisticated consumers seem to be
scanning a higher volume and diversity of information.
The overall pattern suggests a progression in which, as income rises, consumers develop
skills to integrate brands into their lives, not only before and during purchases, but over
the course of a longer engagement. 40%picked in-store as
their favorite way to interact
with brands
The always-on Chinese consumer experience 19
20. Ways to interact with the most interacted brand – subgroups
Q4. In what way(s) do you usually interact with the brand/company that you interacted with the most?
(xx) Denotes “Total %”
35-44 years old
Tier 2 region
Check out their
advertisements
39% (34)
Get information about
them on the internet
39% (30)
Get information about
them on the internet
38% (30)
≤ College education
Shop in stores
58% (48)
Undergraduate+ education
Read email from them
23% (17)
Watch their videos online
31% (25)
Get information about
them on the internet
36% (30)
Shop their products at
e-commerce sites like T-Mall,
Jingdong, Amazon, etc.
34% (29)
Use their
mobile App
27% (22)
Non-working status
Shop in stores
64% (48)
The always-on Chinese consumer experience 20
21. Ways to interact with the most interacted brand – subgroups
SEC C IncomeSEC B Income
Shop online at their
e-store/website
42% (30)
Shop their products at
e-commerce sites like T-Mall,
Jingdong, Amazon, etc.
39% (29)
Engage with
them on WeChat
36% (28)
Watch their
videos online
31% (25)
Use their
mobile App
28% (22)
Read email
from them
26% (17)
Engage with
them on Weibo
22% (15)
Engage with their
loyalty programs
21% (13)
Browse their website
57% (52)
Get information about
them on the internet
39% (30)
Shop online at their
e-store/website
37% (30)
Shop their products at
e-commerce sites like T-Mall,
Jingdong, Amazon, etc.
35% (29)
Shop in stores
70% (48)
Use their mobile App
29% (22)
Q4. In what way(s) do you usually interact with the
brand/company that you interacted with the most?
(xx) Denotes “Total %”
SEC A Income
Get information about
them on the internet
42% (30)
Join their BBS forums
18% (10)
The always-on Chinese consumer experience 21
22. The connection is in the details
It may be true that Chinese consumers meet their preferred brands on multiple channels,
but each channel, for each sector and segment, fills a specific role in the consumer
journey. Most channels have multiple functions. In-store may be important for finding new
products, for securing bargains, or for a shared brand experience. Mobile apps can deliver
in depth brand or product information, video or other interactive content, exclusive offers
and loyalty processing. Other channels have narrower functional range. For example, BBS
forums create communities to share experiences, and online video is a tool to refresh
brand image and showcase new products.
Rich data on how consumers in different segments utilize different channels can be used
to refine and sharpen marketing activities. Learning the channel preferences of a targeted
segment up front helps streamline resource and creative processes. A few findings to
illustrate. WeChat subscription accounts are more popular among consumers with an
undergraduate degree when they interact in travel, financial services, consumer goods,
eCommerce, luxury, and restaurant sectors. QR codes are likely to be more effective
for travel companies marketing to middle and higher income consumers, or to middle
income eCommerce users. Online videos see reasonable acceptance among high income
consumers following clothing and shoe brands. Product review sites and mobile apps
come into use for grocery and financial services sectors.
Weibo news feeds and official accounts, WeChat official subscriptions and official
service accounts, BBS forums, mobile apps, and product review websites; Tmall, Taobao,
JD, and own-brand stores are among the numerous digital channels to understand
and properly harness. Depending on the target, even the most well-understood brand
assets – company website and email blasts – can be used for vastly different purposes:
passive information or a call to action; service provided with full privacy and anonymity,
or customized; content for purposes of encouraging social sharing or for collecting
comments.
Rich data on how consumers
in different segments utilize
different channels can be
used to refine and sharpen
marketing activities.
The always-on Chinese consumer experience 22
23. One consumer, many ripples
When Chinese consumers have a very good brand experience,
they make space for more of the same. For brands accustomed to
markets where even loyal consumers are aloof or very private (see
Epsilon’s 2015 report What Loyalty Looks Like: Updating the Toolkit
for Today’s Japan), the responsiveness of China’s consumers will
come as a surprise. High percentages of our respondents, when
asked how they respond to a very good brand experience, replied
with enthusiasm: they would share with family and friends through
social media and other channels; look to learn more about the
brand; open more channels for contact – WeChat, mobile
app, Weibo, email; and post positive comments online.
The full embrace through researching, purchasing, following,
commenting, and endorsing creates a powerful culture that
integrates brands unapologetically into many aspects of a
Chinese consumer’s life. This news ought to prompt brands
accustomed to a more protective or private consumer
culture to invest in one-to-one marketing strategies.
Engagement Based on a Very Good Experience
63%
Follow them
on WeChat
49%
Subscribe to the
brands’ video
channels
65%
Search online/offline
to learn more about
the brand or their
products/services
52%
Post comments on
the brand/company’s
social media site
53%
Subscribe to
their email
communications
63%
Interact with
brand/company
more
52%
Contact the brand/
company about the
experience
58%
Post positive
comments online
57%
Follow them
on Weibo
66%
Tell family &
friends about the
experience
60%
Share the experience
on social media with
family & friends
62%
Install their
mobile APP
60%
Buy more, even if
less costly options
are available
Q8. If you have a very good experience with a brand/company, how likely would you do any of the following statements? Please use a scale from 1 to 10 where 10 means “very likely” and 1 means “not at all likely”.
Weighted base: Respondents who mentioned top 3 interacted brands
The always-on Chinese consumer experience 23
24. In the case of disengagement after a very poor experience, we expected that
family and friends would hear all about it. Somewhat surprisingly, though,
negative Word-of-Mouth occurs at significantly lower rates than positive Word-
of-Mouth. The likelihood of posting negative comments on the brand’s social
media site is 44%, compared to 52% for positive comments. When it comes
to posting comments on other sites, the effect is more pronounced: 58% of
respondents said they would be likely to post positive comments online, and
only 38% said they would post negative comments. In general, the responses
to a very poor experience are more likely to be private, for example reducing
purchase frequency, stopping buying, or uninstalling a mobile app.
Likelihood of posting positive vs negative comments
on brand’s social media site and on other sites
brand’s social
media site
52% 44%
other sites
58% 38%
Negative commentsPositive comments vs
The always-on Chinese consumer experience 24
25. Key takeaways for marketers
2. Make the most of your web and mobile storefronts
In an always-on market like China, you website is not only your brand’s global storefront but also a portal to
personalized service … and a platform for the experience that can make or break your brand. Just having a presence
is no longer adequate. To ensure content is relevant, pinpoint how your site fits into the customer journey. Epsilon
research finds that Chinese consumers visit brand sites early in their brand journey, switching to eCommerce platforms
and brick-and-mortar stores only once they know a brand. Taking that on board, most brand sites should center on
product education. To support iPhone-wielding Chinese consumers, brands also need to identify how their mobile site
fits uniquely into the journey to purchase. More often than not, mobile content and services need to be distinct from
what is provided on a brand’s desktop website. In this regard, web and mobile analytics are critical for understanding
digital behaviors and developing strategies targeting the always-on Chinese consumer.
Epsilon believes consumer and retail companies can master consumer experience in China for competitive advantage
by focusing on several key areas.
1. Know which communications channels are used in your sector
Consumers choose different channels for different purposes depending on sector. A few examples from our research:
SMS, email and phone calls are better received when they are used for financial services; QR codes get a stronger
response for restaurants than for any other product or service; mobile apps are a good fit for engagement with travel
services. To make optimal use of marketing budget, use in-depth research findings to understand how each channel is
used in each sector.
The always-on Chinese consumer experience 25
26. 4. Collect and mine data to understand the consumer journey
In China, brand engagement unfolds across the full spectrum of broadcast and interactive channels. Instead of
investing in a one-stop asset, learn to manage – and frequently evaluate – interactions on several different platforms
best suited to the evolving habits of your consumers. Data can be the secret ingredient in formulating a cross-
channel engagement strategy to make happy customers. Use analytics to drill for data on each channel, correlate
across channels to get the full picture, and then plan out your marketing to create an overall brand experience. Keep
an eye on the big picture of overall experience: the ways in which consumers use each channel will evolve as new
technologies and practices emerge.
5. Invite buzz, and make it fun!
Chinese openly welcome opportunities to interact, associate, and affiliate with brands, and the impact of a positive
experience ripples widely through the friends, family, and the online space of a happy customer. Keep in mind: Chinese
consumers rate “fun” as more important for brand satisfaction than product safety or service; “My friends engage with
this brand too” and “Can leave comments online” rank just behind product safety. Whether it’s on a Weibo account, a
WeChat subscription, or a comment showcase in your online store, use something fun to invite Chinese consumers
to share, discuss, critique or rave about your brand. Find out who your most satisfied consumers are and deploy a
strategy of delivering a memorable experience to generate Word-of-Mouth.
3. Adopt an “always-on” mentality
Chinese consumers have come to expect the anytime customer service pioneered by China’s top e-commerce
players, especially frontline instant messaging and call center services. Rather than trying to recreate or outdo their
service levels, adopt the tone and responsiveness as much as your company’s resources allow.
The always-on Chinese consumer experience 26