Brands face constant battle to attract, keep customers
Building a big brand in China requires attracting and recruiting as many shoppers as possible, according to a new report that has found brand penetration is the driver of market share in the country.
Although shopper loyalty is important in certain consumer goods categories, including infant formula and baby diapers, market penetration - defined as the number of customers who buy a specific brand at least once a year - is the most important driver of market share, according to China Shopper 2013, jointly released by Bain & Co management consultants and Kantar Worldpanel consumer researchers.
The report on the purchasing behavior of Chinese shoppers is the second collaboration by Bain and Kantar, which collected data from 40,000 shoppers in nearly 2,000 cities across China who were each provided with a scanner.