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Status branding: Winning over China

Source: Date:2008-11-20
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AS the fanfare closed in on the Beijing Olympics in a spectacular display of pyrotechnics, it signaled the dawn of a new era. China had successfully established itself as a global superpower. Relatively unaffected by the global subprime crisis, China has continued to post double-digit growth in retail spending1. And spearheading this growth is the country's newly empowered youth market. For the nearly 360 million Chinese aged below 20 and born into a post-depression capitalist society, the poverty woes of their forefathers are as far-removed as their pockets are deep. What marketers should note is that these youths, mostly from single-child families, wield tremendous purchasing power and influence over their family's spending habits. In fact, according to KPMG's Consumer Market analysis, it is the youngest member of the family who directly influences more than 50% of the money spent in Chinese one-child families2. More than a third of the modern Chinese family's disposable income is spent on daily food items, making it paramount for food manufacturers to differentiate themselves to capture the youth demographic. For these brand owners, one of the best and often simplest ways to stand out on China's crowded retail shelves is to invest in innovative packaging.

Creating status brands through resealable technology

Studies have shown that the youth in China desire status brands and the prestige associated with owning their products. They place a high premium on merchandise that look good, and often make point-of-purchase decisions based on the item's outward appearance, especially with food. So, more than ever before, marketers need to grab consumers' attention within seconds as they browse through congested supermarket shelves. Simply adding the convenience of a resealable closure to flexible packaging achieves that result as it instantly enhances the functionality and brand value of the product. Just think, a sliced ham package with added value has a much higher extrinsic brand appeal compared to a packet without the resealable option, and customers will naturally feel more inclined to the package they can reuse. In addition, the beauty of resealable flexible packaging lies in the long-term brand exposure it provides to products, as consumers are able to store contents in the original printed packaging without transferring to another container. Zippered closures ensure that consumers who reuse the package constantly view brand messages, so food brand owners will stretch their marketing dollars much further.

Convenience for the young and on the go

For youths, innovative, convenient packaging captures their attention more than conventional boxes or containers do. Functionality is a byword for young consumers who are accustomed to the ease-of-use and technical aspects of modern gadgets, and expect the same out of food product packaging they come across every day. Young Chinese consumers with fast-paced lifestyles appreciate packages that feature convenient resealable options. This enables them to open and close the package, and store the unconsumed contents in the original bag or pouch easily to save time. Just imagine a 15-year-old who's late for school and has no time to down his bowl of cereal with milk. Instead, he grabs a resealable pack of muesli snacks that allows him the flexibility of consuming his breakfast while commuting. This on-the-go flexibility also supports peer-to-peer influence, one of the most effective ways to build a brand's status. Brand-conscious youths in China who rely heavily on word-of-mouth recommendations are more likely to purchase a product they see their friends carrying or eating. A multitude of resealable closure solutions that fit virtually any consumer product package are available, and the slider zipper is one such innovation thaAir Force 1 Low Flyknit

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