From State Media to Social Media
China's state-run newspapers, national television and radio were
the main source of information for generations. The increased
penetration of the internet and smartphones has altered that
forever, giving Chinese consumers a more objective way to find
information, and one that they trust much more than traditional
propaganda channels.
Social media has finally given the average Zhou a voice, and
he's taking advantage of it. More than 90% of China's 618 million
people online used it in the past six months according to a
McKinsey report, versus around 70% in the U.S and 50-60% in most
Western countries. The transparent nature of social media puts a
brand out there, to be praised or panned, contributing to 85% of
online consumers trusting a brand more if they have seen it on a
social network.
In China's rapidly growing e-commerce market, a lack of trust
contributes to different online shopping habits than in the West.
Whereas brand.com stores make up the lion's share of sales in
places like North America, over 80% of online purchases in China
are made on established marketplaces like Alibaba's Taobao. A big
part of this is because of their trustworthy payment methods,
return policies, delivery and customer reviews, even though Taobao
is well-known for selling fake goods. Jingdong and Alibaba's Tmall,
which guarantee the authenticity of their products, have become the
fastest-growing shopping platforms in China and are more trusted
than most offline retailers.
Coming from the West
Being a Western brand in China used to instill unquestioned
faith in a product or service. Companies such as KFC built their
brand on that trust, with Chinese consumers thinking that fried
chicken bearing the Kentucky name would be much safer than local
cuisine, simply because it followed Western quality control
standards. In December 2012, a China Central Television report on
KFC suppliers' use of antibiotics damaged many consumers' trust in
the chain. Subsequent campaigns targeting Volkswagen for defective
gearboxes and Nike for charging more for
sneakers in China than overseas, similarly eroded faith in Western
brands, and contributed to five consecutive quarterly declines in
Nike's Greater China revenue. While foreign brands remain more
trusted than local ones in most cases, consumers still do a lot of
research into them before they buy.
Trust in Communications
Trust plays a big part in many communications in China. Local
electrical appliance retailer GOME ensures the Chinese character
for "trust" is central in its communications. The brand is also
endorsed by Feng Shaofeng and Gao Yuanyuan, two famous actors who
always play the "good guys" to enforce the message that they will
keep their promise.