Chinese Consumers and Sustainability

MFAT (Ministry of Foreign Affairs and Trade) produce interesting, easy-to-read reports on a wide range of topics of interest to New Zealand exporters. One that got my attention recently focused on Chinese consumer perceptions about sustainability. China’s economy is looking a bit wobbly of late, and with our economy also looking a bit fragile, everyone is hoping that our exporters and tourism will pull us through these challenging times. Written by the New Zealand Consulate-General in Shanghai, it contains up-to-date information on the importance of sustainability for a Chinese consumer.

Here are some highlights of the report:

• Chinese consumers prioritise personal health benefits over environmental concerns when making purchasing decisions.

• Sustainability messaging can help brands command a higher premium, especially when linked to better health outcomes.

• New Zealand has a natural advantage in promoting sustainability, but other countries also effectively emphasise their green credentials.

• China's emphasis on healthy lifestyles presents opportunities for New Zealand, particularly in promoting ecotourism and durable products.

• China's top-down approach to environmental challenges can quickly change companies' behaviour and drive sustainable practices.

• Chinese consumers, especially the younger generation, increasingly care more about sustainability, particularly health and welfare.

• Government and industry-certified labelling can strengthen consumer trust in sustainability messaging.

• Wealthier Chinese consumers are pursuing healthier lifestyles, creating opportunities for New Zealand in eco-tourism and durable goods.

• Chinese government policies are accelerating decarbonization and driving changes in industries like renewable energy and electric vehicles.

• Businesses in China are responding to international sustainability benchmarks, particularly EU regulations, to stay competitive in global markets.

• Chinese consumers are becoming more discerning and are seeking products with sustainable and environmentally friendly credentials.

• New Zealand businesses can leverage the country's environmental credentials to add value and appeal to Chinese consumers, especially by linking sustainability with health benefits.

Ten Growing Markets for 2023

MarketResearch.com thinks the ten industries below will grow exponentially in the next five years.

1. 5G Security - gives better network capacity plus more security and privacy.

2. Virtual Reality Gaming - players with rising disposable incomes in countries like Brazil, India, and Mexico will drive future growth.

3. Virtualisation Software - Amazon, Google, Microsoft, Oracle, and Huawei Technologies are all fighting for market share, driven by users from the United States, China, Japan, Canada, Germany, Australia, India, and South Korea.

4. Digital Education - After Covid drove the change in how we learn, the digital education market has grown massively. It is expected to be worth $136 billion by 2030 at a CAGR of 25.1%.

5. Healthcare Predictive Analytics - Predictive analytics help centre care and well-being to an individual's needs. It can identify early indicators of patient deterioration, design personalised medicines, and improve clinical trial outcomes.

6. Cannabis Edibles - Edibles appeal to new consumers who don't want to inhale smoke or feel uncomfortable consuming cannabis in specific environments. The baked goods and confectionery are discreet and convenient for customers to explore this market.

7. E-commerce Logistics - Artificial intelligence and big data are transforming this industry, making it safer and faster.

8. Solar Energy Solutions - Key drivers of the use of solar are the interest to adopt green energy, smart cities, increasing tariffs, and regulatory compliance.

9. Vaccines - Covid has increased interest and funding in vaccine technology for other diseases.

10. Fintech-as-a-Service - Fintech-as-a-service employs API, artificial intelligence, robotic process automation (RPA), and blockchain technologies, all changing the global financial environment.

Tips for Buying Market Research Reports

There are a plethora of published market research reports out there, but some of these reports aren’t from credible publishers. Here are some red flags for me.

• I look at the pagination of the table of contents and noticed that there isn’t much content devoted to a topic or competitor. Basic I know, but if these aspects are the reason for buying the report, then maybe rethink things. For me, this lack of space often corresponds with just contact details supplied or very generic information. In this case, ask for a sample from the publisher to check the content. You can then appraise the sample to reassure yourself about the standard of English used as well. One sample I requested had such a low level of business English that it was intelligible.

• With markets like medical devices, for instance, there are many different configurations of what is counted or researched in terms of functionality or size. Another trap I have come across is when studying the markets of mechanical devices and how they are powered eg. electric, battery, petrol, or diesel. Researchers often don’t state exactly what they are counting and for what market segment it is meaningful to.

• Cookie cutter reports follow the same prescriptive outline - I can spot one of those a mile off. They are heavy on historical detail, the numbers are dated, and there’s nothing future-oriented. There’s little value in these often expensive market research reports IMHO. Foresight is always going to be better than hindsight to get insight and to protect market share. The ROI of you (or me!) spending time doing a recent news search and see what’s going on now is a much better option.

Case Studies for Market Research

Check out our latest issue of Insights, where you will find out how to get hold of case studies that just might help give you some insight on how to solve a problem, using the benefit of others experience. No need to reinvent the wheel!

We also feature a great resource which graphically plots where an executive fits in an organisation. That's always interesting to see who their equals are and who they report to, as you can sometimes get a feel about where the company is positioning itself. Don't forget to also see the link to where you can get some free market research.