,2019,Thefast changing interactionof Chinas consumer with brands,31 markets,22 industries,1,800 brands,Ongoing 10 years,2019Meaningful Brands Study,World350,000 consumers,China16,900 consumers,Tier 1- 3 cities,16 industries,27 categories117 brandsOngoing8 years,Our uniqueBrand Research,DEVELOPMENT CHINA: HOW CONSUMERS INTERACTION WITH BRANDS IS CHANGING,% of brands whose disappearance people would not care about,20152017,54%,of brands in China could disappear tomorrow &no one would care,Dis-attachment of Chinese consumers with brands accelerates,2019,50%52%54%,E-COMMERCE AND O2O2O HAVE ACCELERATEDDIS-ATTACHMENT AND CONSUMERS REVIEW ON BENEFITS PER DEFAULT,EC & O2O2O have changed consumers buying and their mindset:default comparison on benefits, noton brand image,Access to unlimited offer in e-commerce,Impact of O2O2O /New retail,Smart buying,The reviewingconsumer,Brand dis-attachment acceleration,Changing mindset on brand image vs. relevance,Direct switch behavior,Default multi-factor comparison on benefits,THEY WANT MEANINGFUL BENEFITSTHAT IMPROVE THEIR DAILY QUALITY OF LIFE NOW, TRIGGERED BY THE ECONOMIC SLOWDOWN,71%,A less positive forecasted future, boosts Chinese consumers needsto improve their quality of life by consumption,Losing job / finding a job (24%)Becoming ill and not being able to work (24%)Having enough money to retire on (21%)Keeping up with the cost of living (15%)Paying my monthly bills (13%)Paying my rent or mortgage (12%)Level of debt (9%),CHINESE CONSUMERS KEY CONCERNS,Source: Meaningful Brands 2019, Kantar 2018 Marketplace Briefing China,GROWING NEEDS TO IMPROVE QUALITY OF LIFEShould companies and brands play a role inimproving our quality of life and wellbeing?,2015,84%2019,No compromise on daily quality of life now while postponing expensive,less urgent buys,Buy more premium products,28%,Source: Netease Quality of life in China / Counterpoint / Mintel Furniture and household retail 2018 / Mintel - China Automobile Market,Mobile,-13%,-14%-11.6%,Sales development 2018-2017,SPENDING ON DAILY LIFE ENJOYMENTMAINTAINS,EXPENSIVE BUYS TO BE POSTPONED,Personal benefits,Collective benefits,Functional benefits,FUNCTIONAL,PHYSICAL,GOV/ETHICS,ENVIRONMENT,COMMUNITY,WORKPLACE,ECONOMY,ORGANISATIONAL,FINANCIAL,INTELLECTUAL,SOCIAL,EMOTIONAL,NATURAL,Focus on meaningful benefits: improving the quality of their lives,Communication of meaningful benefitsthat improve the quality of daily life now,They want meaningful benefitsthat improve their daily quality of life now, triggered by the economic slowdown,E-commerce and O2O2Ohave accelerated dis-attachment and consumers review on benefits per default,HOW MEANINGFULNESS DRIVES BRAND RESULTS MORE THAN EVER,Share of Wallet,MB Index,Demand for meaningfulness in China is high and manifest,Significant meaningfulness is needed (overreaching a particular threshold),65,80,75,80%,60%,40%,20%,100%,x9,0%,70,Meaningfulness in China translates quicker to a higher share of wal et,China 2019,Global 2019,WHAT IS MEANINGFUL FORTODAYS CHINESE CONSUMER?,36%FUNCTIONALBENEFITS,34%PERSONALBENEFITS,30%COLLECTIVEBENEFITS,CHINA,41%FUNCTIONALBENEFITS,30%PERSONALBENEFITS,29%COLLECTIVEBENEFITS,GLOBAL,Improve Chinese lives now: go beyond the product/ functional benefits,Importance of benefits,ARG,AUT,BEL,BRA,CAN,CHL,CHN,DNK,FRA,DEUEST,IND,IDN,KOR,LVA,LTU,MYS,MEX,NLD,PER,JPNPOL,ITA PRT,RUS,SGP,ESP,SWE,TWN,GBR,USA,Morefunctional,More personal & collective,HigherMeaningfulness,LowerMeaningfulness,Benefits that drivePersonalandCollectivequality of live,are highly,meaningful for,Chinese consumers,Good Quality Prods,Fair Price for the QualityUseful ProdsSafe& Responsible Prods,China 2017,FUNCTIONALBENEFITS,China 2019,Good Quality Prods,Safe & Responsible Prods Useful ProdsFair Price for the Quality,TOP RANKING OF FUNCTIONAL BENEFITS,Offers good quality products/services ; Offers responsible/safe products/ services; Offers useful products/services ; Products and services are priced fairly for the quality,Chinese consumer keeps trading up. Good quality as top criteria,to the extend of credential benefits,Fair Price for the QualitySafe& Responsible Prods,Good quality Prods,Useful Prods,China 2015,FUNCTIONALBENEFITS,Significantly higher than China 2017Offers good quality products/services ; Offers responsible/safe products/ services; Offers useful products/services ; Products and services are priced fairly for the quality,Recent safety issues, highlighted by multiple news platforms,have made the benefit TOM again,Good Quality Prods Fair Price for the Quality Useful Prods,Safe& Responsible Prods,China 2017,China 2019,Good Quality Prods,Safe & Responsible Prods,Useful ProdsFair Prices for the Quality,TOP RANKING OF FUNCTIONAL BENEFITS,Fair Price for the Quality,Safe& Responsible Prods,Good quality ProdsUseful Prods,China 2015,Good Quality Prods Fair Price for the Quality,Useful Prods,Safe& Responsible Prods,China 2017,FUNCTIONALBENEFITS,China 2019,Good Quality ProdsSafe & Responsible Prods,Useful Prods,Fair Prices for the Quality,TOP RANKING OF FUNCTIONAL BENEFITS,Offers good quality products/services ; Offers responsible/safe products/ services; Offers useful products/services ; Products and services are priced fairly for the quality,High innovation rates drives consumers expectation onproduct features,Fair Price for the Quality Safe& Responsible Prods Good quality Prods,Useful Prods,China 2015,Global 2019,TOP RANKING OF PERSONAL BENEFITS,PERSONALBENEFITS,Life easier Peace of mind Me Happier,Life satisfaction,New Ideas,Significantly higher than China 2017Helps me feel more satisfied with my life; I like to be seen using this brand; Makes my life easier ; Helps me feel happy; Gives me peace of mind and confidence,Life satisfaction increasingly matters to Chinese consumers,Me Happier,Life satisfaction,China 2017,China 2019,Life satisfaction,Me HappierBe seen using the brandLife easierPeace of mind,Life easierBe seen using the brandPeace of mind,Life easierBe seen using the brand Peace of mind,China 2017,TOP RANKING OF PERSONAL BENEFITS,PERSONALBENEFITS,China 2019,Be seen using the brandLife easierPeace of mind,Brands need to facilitate achievement and options for the futurein two dimensions,Discover newthingsFacilitate to reach the full potential / learn new skills,TOP RANKING OF PERSONAL BENEFITS,PERSONALBENEFITS,“Me Happier” shows 3 key need manifestations,1.Everyday indulgence,2.Work hard, to enjoylife to the fullest,3.Experiences surpass the desire of possession,Me Happier,China 2017,China 2019,Life satisfaction,Me Happier,Be seen using the brandLife easierPeace of mind,Life satisfaction Life easierBe seen using the brand Peace of mind,TOP RANKING OF PERSONAL BENEFITS,PERSONALBENEFITS,Significant higher than China 2017Helps me feel more satisfied with my life; I like to be seen using this brand; Makes my life easier ; Helps me feel happy; Gives me peace of mind and confidence,The new technology and platforms have boosted the usageand attitude of social sharing,Me Happier Life satisfaction Life easier,Peace of mind,China 2017,China 2019,Be seen using the brand,Life satisfaction Me Happier,Life easierPeace of mind,Be seen using the brand,TOP RANKING OF PERSONAL BENEFITS,PERSONALBENEFITS,The development of technology has accelerated the need foran easier life,Me Happier Life satisfaction,Life easier,China 2017,China 2019,Life easier,Life satisfaction Me HappierBe seen using the brand,Peace of mind,Be seen using the brand Peace of mind,COLLECTIVEBENEFITS,Ethical Transparent Diversity,Benefits Local economy,China 2017,China 2019,Benefits Local Economy,Ethical Diversity Transparent,TOP RANKING OF COLLECTIVE BENEFITS,Significant higher than China 2017Its business activities benefit the economy of COUNTRY today; Is ethical; Is open and embraces diversity; Is transparent and honest on its activities and communications,1.Express National pride,2.Contribute to thelocal peoples welfare,Collective Benefits: support of the local economy to a top positionas China internationally gets attacked on its route to welfare,HOWCAN WE LEVERAGE MEANINGFULNESS IN MARCOM,4.45,4.68,4,.57,Weak,Med,Good,BRANDS' PERFORMANCE,IMPORTANCE,34%,36%,30%,Personalbenefits,Functional benefits,Collectivebenefits,Chinese brands under-deliver on personal benefits,72%Correlation betweenperformance onPersonal Benefits andContent Effectiveness*,*CONTENT EFFECTIVENESS IS defined by crossing the strength of association of a brand tocontent types and the performance of the content performed by the brand,Great Content drivesPersonal benefits,PRODUCT,CONTENT,SERVICE,52%,of the contentprovided by brandsis meaningful to Chinese consumers (46% in 2017),Content performance by brands in China improves steadily,+,Mostexpected,-,+,-,Leastexpected,Mostwanted,Least wanted,INFORM,REWARDINSPIREHELP,ENTERTAIN EDUCATE,Inspire, help and reward are most wanted content,TODAYS TAKE AWAYS,Todays take aways,Chinese consumers are getting less attached to brands accelerated by ECThey want meaningful benefits that improve their daily quality of life now,driven by the economic slowdownFunctional benefits: more and more into higher quality productsWith a higher demand on: certification, data & trackable process.High level of innovations with professional features.,Todays take aways,Personal benefits: focus on the now“Enjoyment” on 3 levels: play hard, daily indulgence and experiences.Discovering new things and learning new skills drive “Life satisfaction”.New social platforms have accelerates the need to “be seen”.Tech innovation drives the need for more convenience.Collective benefits: small steps outside of the personal sphereNational pride benefits rises, especially at younger audiences.Need to be facilitated to contribute to other collective purposes.Content marketing that inspires, helps or rewards is proven effective to addmeaningfulness to products and services,THANK YOU !,