Speaker: Alec Cheng

Topic: The New ˇ§Mass Premiumˇ¨ Battleground

 
 

The Mass Premium Market ˇV Chinaˇ¦s New Frontier

Chinese love brands

  • Identity Enhancement
  • Brands Project Status
  • Reassurance

Dilemma

  • Scale vs Margin

The PRC Market Structure

  • International Brands Need Scale
  • Local Brands Need Margin
  • Healthy Brands Need Both

MNC Brands

  • Extending Downwards
    • Lower the cost of goods. Period.
    • Develop sub-brands that address different needs
    • Broaden a brandˇ¦s portfolio
    • Maximise public consumption

Local Brands

  • Extending Upwards
    • Create a sub brand to uplift brand identity
    • Celebrate the Motherland!
    • Celebrate ˇ§Chinesenessˇ¨!
    • Use ˇ§ingredient purityˇ¨ or local heritage
    • Leapfrog technological standards
    • Adopt international branding standards