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Hong Kong Brands to Tap the Chinese Mainland Market: Electronics and Electrical Appliances

Whether consumer electronics or small electrical appliances, the majority of middle-class consumers on the Chinese mainland expressed a preference for mid-range or above products. In particular, some 90% of middle-class consumers see Hong Kong brands positioned in the medium price range and above. Bearing this in mind, Hong Kong companies which are new to the mainland market can take advantage of the positive image of Hong Kong brands to make an entry into the mid- to high-end of the market where Hong Kong brands enjoy higher acclaim.

 
Photo: Mainland consumers see Hong Kong brands positioned in the medium price range and above (1)
Mainland consumers see Hong Kong brands positioned in the medium price range and above (1)
Photo: Mainland consumers see Hong Kong brands positioned in the medium price range and above (1)
Mainland consumers see Hong Kong brands positioned in the medium price range and above (1)
Photo: Mainland consumers see Hong Kong brands positioned in the medium price range and above (2)
Mainland consumers see Hong Kong brands positioned in the medium price range and above (2)
Photo: Mainland consumers see Hong Kong brands positioned in the medium price range and above (2)
Mainland consumers see Hong Kong brands positioned in the medium price range and above (2)

 

Hong Kong Brands: Mid- to High-end Image

The Hong Kong Trade Development Council (HKTDC) recently conducted a questionnaire-based survey with regard to the consumer market in eight mainland cities.  Overall, some 90% of middle-class respondents see Hong Kong brands positioned in the medium price range and above, including consumer electronics (audio-visual and wearable/connected items) and small electrical appliances.  Even not counting mid range products, over 50% of respondents perceive Hong Kong brands as mid-to-high or high-end products. Only less than 2% of the consumers perceive Hong Kong brands as medium-to-low range or low-end products.

Chart: Consumers’ Perception of Hong Kong Branded Consumer Electronics and Electrical Appliances
Chart: Consumers’ Perception of Hong Kong Branded Consumer Electronics and Electrical Appliances

 

Chart: Small Kitchen Appliances
Chart: Small Kitchen Appliances

 

Consumers’ Interest in New Brands

It is worth noting that 82% of the respondents expressed a willingness to try new or less well-known consumer electronics or electrical appliance brands provided that they met all of their requirements. Only 18% indicated that they would not try new brands. The most important factors attracting consumers to buy new brands are: featuring functions not offered by other brands, value-for-money (or high price-performance ratio) and discount.

 

Photo: Majority of the respondents expressed a willingness to try new or less well-known consumer
Majority of the respondents expressed a willingness to try new or less well-known consumer electronics brands (1)
Photo: Majority of the respondents expressed a willingness to try new or less well-known consumer
Majority of the respondents expressed a willingness to try new or less well-known consumer electronics brands (1)
Photo: Majority of the respondents expressed a willingness to try new or less well-known consumer
Majority of the respondents expressed a willingness to try new or less well-known consumer electronics brands (2)
Photo: Majority of the respondents expressed a willingness to try new or less well-known consumer
Majority of the respondents expressed a willingness to try new or less well-known consumer electronics brands (2)

 

Table: Reasons for Trying New Brands
Table: Reasons for Trying New Brands

 

On the other hand, attitude of consumers towards new brands varies from city to city. Taking consumer electronics as an example, almost all respondents in Beijing indicated they would try electronic products of new or less well-known brands. In so doing, they attach most importance to product functions not offered by other brands (45%), trendy designs not offered by other brands (37%), and whether the product is sold by reliable stores or websites (32%); yet they do not care much about value-for-money/discount (2%). Meanwhile, more consumers in Shanghai, Qingdao and Wuhan indicated they had no intention to try products of new or less well-known brands, accounting for 59%, 30% and 28% of the respondents respectively. In second-tier cities Chengdu (54%) and Nanjing (48%), consumers place more emphasis on value-for-money and discount, while their counterparts in Shenyang find the attractiveness of the functions of the new brands (36%) and price concessions (34%) of the product also important.

 

Table: Reasons for Trying New Brands, by City
Table: Reasons for Trying New Brands, by City

 

However, Hong Kong companies should take note that despite the positive awareness in the tier one cities, there are a small number of consumers in the tier two cities who maintain they have no interest in Hong Kong brands. Certain consumers are also somewhat sceptical about products of brands that are less well-known. In view of this, Hong Kong companies that are new to the mainland market can try and attract consumers by leveraging the Hong Kong brand advantage, while offering value-for-money products and sales promotions. They should also consider carrying out more promotional initiatives, provide more product information and seek to enhance their brand awareness in order to attract consumers.

 

(For more details, please see HKTDC Research reports: “China’s Electronics Market: A Consumer Survey of Audio-Visual and Wearable/Connected Items” and “China’s Small Electrical Appliances Market: A Consumer Survey”)

 


 

[1]  The HKTDC recently conducted a questionnaire-based survey with regard to the mainland consumer market. The survey focused on eight mainland cities and was carried out between December 2014 and the end of January 2015. The eight cities covered were - Beijing, Shanghai, Guangzhou, Wuhan, Chengdu, Shenyang, Nanjing and Qingdao. A total of 1,621 middle- to upper-class consumers were surveyed. For more details, please see HKTDC Research reports: “China’s Electronics Market: A Consumer Survey of Audio-Visual and Wearable/Connected Items” and “China’s Small Electrical Appliances Market: A Consumer Survey”.

[2]  In this article, consumer electronics means (i) audio-visual products; and (ii) wearable/connected items.

Content provided by Picture: Wing Chu
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