Do Chinese consumers have the same sustainability concerns as their Western counterparts? What drives their purchasing decisions when it comes to sustainability? It’s clear that sustainable brands will increasingly have the edge in 2024 and beyond, so how should you communicate with Chinese consumers about the credentials of your products?
Like people in countries all over the world, Chinese consumers are experiencing the effects of climate change and unmanaged waste products first-hand and are concerned about the future. To varying degrees, these concerns are now translating into greater consideration of the sustainability credentials of brands and, ultimately, purchasing intentions.
Moreover, the Chinese government is driving green initiatives from the top down as part of its goal of reaching peak carbon emissions by 2030 and carbon neutrality by 2060. Electric vehicle subsidies, waste sorting schemes and bans on single-use plastics have all had an impact on consumer behaviour.
What are the sustainability concerns of Chinese consumers?
The lack of large-scale public environmental activism in China can paint a picture of a consumer base disinterested in sustainability, but this is not the case. According to a survey by accounting and consulting firm Forvis Mazars, three quarters of Chinese consumers have engaged in sustainable consumption, and an equal proportion feel they are proactive in learning about brands’ sustainability initiatives. Perhaps more importantly for companies in China, 80% of the consumers Forvis Mazars surveyed believe that their loyalty to a brand would increase if sustainability measures were in place.
A recent Deloitte survey concurs, with over 70% of Chinese consumers surveyed accepting sustainability concepts, of which more than 70% have taken sustainable actions. Nevertheless, there are some differences in the sustainability concerns of Chinese and Western consumers that brands should be aware of. A recent Deloitte survey showed that while both Chinese and UK consumers believe that “producing sustainable packaging and products” is the most important sustainable consumption value, overall, Chinese consumers’ understanding of the concept leans towards explicitly environmental practices, while UK consumers also emphasise ethical working practices and human rights.
There is another dimension that brands should be aware of: Chinese consumers purchase sustainable products not just to contribute to a greener environment, but also to protect themselves from a polluted environment. Pollution, notably air pollution, has been a day-to-day experience for many people in China (particularly slightly older consumers), with direct effects on their health. This has created a genuine desire to purchase products made from safe, high-quality, chemical and pollutant-free materials, which are often better for the environment as well.
For British brands in China, customer education is the most important thing to focus on, followed by communicating sustainability in combination with other unique selling points – Celine Tang, China Business Adviser (Consumer Retail & E-Commerce), CBBC
How to make sure green messaging resonates with Chinese consumers
Education should be a critical marketing consideration for brands with a green message to communicate. “Chinese consumers do not have enough information about sustainable products and how sustainability is achieved through design,” says Celine Tang, China Business Adviser (Consumer Retail & E-Commerce), CBBC. In Deloitte’s survey, 53% of consumers said they didn’t have enough information about sustainable products and services. This lack of information is a key barrier to sales conversion.
Live streaming is one of the most effective ways of demonstrating a product’s eco credentials while also building a narrative about how consumers can use the product as part of a more sustainable lifestyle. This strategy is particularly effective with Gen Z, who seek novelty, value and any opportunity to build emotional connections with brands. As an example, San Francisco-based sustainable footwear maker Rothy’s (whose shoes are made from recycled plastic bottles) has seen success with live streaming on Tmall.
Companies should certainly try their best to drive the sustainability conversation, but Chinese consumers, like their counterparts in the West, are often sceptical of corporate sustainability claims. Brands need to demonstrate actionable initiatives and a sense that sustainability is built into their DNA. A brand like Patagonia, which is popular among younger Chinese consumers, especially those who have studied abroad in countries like the US and UK, would be a good example. What’s more, the ability to build sustainability concerns into brand DNA from the get-go could give younger, smaller brands an advantage over established players.
Explore the sustainability concerns of Chinese consumers at China Consumer 2024
CBBC’s flagship consumer event, China Consumer, will take place in London on 14 October 2024. The event will explore a diverse range of topics, including phygital retail, sustainability in China, cybersecurity and more through panel sessions, brand interviews, a networking lunch, and break-out workshops.
Click here to purchase tickets
