Daily Research News Online no. 2635

Decline of Maotoring

September 30 2003

China's car buyers are no longer looking for basic transportation - 'status, belonging, and attraction' are becoming key considerations according to a new study conducted jointly by TNS and NFO WorldGroup. 'Status' buyers now outnumber 'utility' buyers four to one in the cities surveyed, whereas in 2001 there were similar numbers in each category.

The China Brand Health and Needs Segmentation study made 8,000 evaluations of 34 major brands, among personal-use new car buyers in June and July in Beijing, Shanghai, and Guangzho. It aims to understand the motivation behind the purchasing decisions of new car buyers in China and their perceptions of 34 major industry brands. Instead of traditional direct questioning about purchase motives, the study uses a proven psychological framework to uncover the 'emotive needs' that drive brand selection.

In the 2003 study, 40 per cent of new car buyers fell into the 'Status' buyer category, up from 30 per cent of new car buyers in 2001. In contrast, 'Utility' buyers have dropped from 25 per cent to roughly 10 per cent during the same period. The study attributes this trend to a buoyant economy and growth in consumerism.

'Understanding the new car buyer's emotive needs is the key to successful brand positioning and communication', said Chris Bonsi, Regional Director of TNS and NFO Automotive. 'In addition, while status is an unmistakable motivation for a luxury car owner, this need exists across all consumer groups, including entry level passenger car buyers'.

Six major 'need segments' are identified for the Chinese market:

Status buyers want to show off success and gain self-confidence
Utility buyers are motivated by a basic need for transportation
Adventure buyers seek freedom and adventure
Family buyers want a car to please their family
Belonging buyers want to fit in socially
Attraction buyers want to be attractive and attract attention.

Bonsi says that there are now 'an overwhelming number of aspirational cars for Chinese consumers to choose from, and this excitement of being able to buy social mobility is fuelling the explosive growth in vehicle sales this year'.

The study will be repeated annually. TNS also plan a syndicated customer satisfaction study among new car buyers in China - this will focus on how manufacturers can retain newly acquired customers.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.