I have covered the luxury retail market in my last post (“What’s in Store in the Luxury Department?”). But what do China’s wealthy elite want to buy when they go into one of these new department stores? Some of the answers have been provided by Chief Executive magazine (see details here or the online version) in their second annual “Top Ten Executive Brands in China” survey.
According to the survey (reported by People’s Daily), the top “executive” brands are:
• Business Hotels: Shangri-La
• Cell Phones: Nokia
• Desktop PC: Lenovo
• Digital Cameras: Canon
• Domestic Airlines: Air China
• Express Delivery: FedEx
• Management Consulting: McKinsey
• Men’s Clothing: Armani
• Personal Banking: China Merchants Bank
• Wine & Alcohol: Wuliangye
Last year’s list apparently only had one local brand (Qinghua School of Management), so the inclusion of companies like Lenovo, and China Merchant’s Bank looks like progress (but the “domestic airline” category never had much risk of foreign competition!). By product category, the results (quoted from the survey press release) were:
• Cell phones: Nokia (50 percent), Motorola (17 percent) and Samsung (13 percent).
• Desktop PCs: Lenovo (29 percent), Dell (27 percent) and Apple (13 percent) ranked highest. Lenovo (36 percent), Dell (29 percent) and HP (9 percent) are the top three choices for a new purchase.
• Digital Cameras: Sony and Canon have the same market share at 31 percent. However, Canon is the most admired brand (26 percent vs. Sony’s 24 percent) and the first choice for new purchases (28 percent vs. Sony’s 21 percent).
• Domestic Airlines: Air China (23 percent), China Southern Airlines (19 percent) and China Eastern Airlines (17 percent) are the top rated local brands. Lufthansa is the top brand among foreign airlines.
• Express Delivery: FedEx (44 percent), China Post EMS (19 percent) and DHL (15 percent). Ninety-six percent of respondents use these services, and 95 percent plan to use them in the next 12 months.
• Men’s Clothing: Armani (23 percent), Valentino (14 percent) and Dunhill (11 percent) are the three brands among China’s executives.
• Personal Banking: China Merchants Bank (35 percent), Bank of China (19 percent) and The Industrial and Commercial Bank of China (13 percent) are the highest ranked local brands. HSBC and Citibank are the top two overseas brands.
• Wine and alcohol: Wuliangye (27 percent), Mao-tai (25 percent) and Great Wall Wine (14 percent) are the top three local choices for wine and alcohol, while Chivas Regal, Hennessy and Remy Martin are the top three overseas choices.
In addition, I suspect that many of the respondents might also have a soft spot for Rolex watches and Mont Blanc pens. Others, of course, still prefer to wear a tatty old suit, and enjoy it when foreign guests think they are the driver…
For more on Chinese brands see “Branded in China (Sold Everywhere)” .
See news source:
Nokia, Lenovo, Air China rank among top 10 executive brands in …
People’s Daily Online – Beijing,China
Nokia, Levono and Air China rank among top 10 local and overseas brands, according to the results of the second annual “Top 10 Executive Brands in China …
Press Release “Top 10 Executive Brands in China” Survey Shows Nokia, Lenovo, Air China Among Leaders
HONG KONG, June 20, 2006 – Chief Executive China magazine, published by Global Sources Ltd. (NASDAQ:GSOL), has released the results of its Second Annual “Top 10 Executive Brands in China.”