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14 Apr 2008
Shanghai
According to the latest Nielsen China Personal Finance Monitor, foreign banks’ efforts to build brand awareness in China’s mass market are starting to pay dividends, in the form of improving awareness levels among China’s emerging and affluent consumers.
In the five major cities surveyed , Nielsen found an increase in consumers’ unaided recall of foreign bank brands. Shanghai, a stepping stone for most foreign companies when they first enter the China market, recorded the highest recall rate for foreign banks (at 52%), followed by Guangzhou (45%) and Beijing (37%). Chengdu recorded the biggest improvement in consumers’ awareness of foreign banks, up from 25 percent in 2006 to 35 percent in 2007. China’s capital, Beijing, also recorded a nine-percentage point increase in foreign banks’ brand awareness among local Beijingers.
In the 2nd tier cities however, more work is needed among locals on brand awareness for foreign banks. Located in the southern part of China, Xiamen enjoys the highest awareness level at 40 percent, while neighbors such as Dongguan and Fuzhou secured a recall rate of only 29 and 18 percent respectively.
With access to over 11,500 Chinese consumers in 18 cities , Nielsen China’s annual Personal Finance Monitor (PFM), provides in-depth analysis into Chinese consumers’ attitudes and behavior in banking, the use of credit cards and insurance.
The Nielsen PFM also found a significant year on year increase in the number of consumers in major cities preferring foreign banks for investment products.
“Although awareness of foreign banks is increasing, many Chinese consumers continue to hold a narrow opinion of foreign banks. Foreign banks need to put more effort into positioning their brands to stand out more effectively from the rest of the crowd, “said Kenneth Lee, Executive Director, Nielsen China.
Of all image characteristics measured by Nielsen, foreign banks were rated higher than their local counterparts in the area of ‘represent social status and success’, which should help foreign banks further develop their premier customer segment. The Nielsen study found the weakest link between foreign banks and Chinese consumers lay in the lack of an extensive ATM network and an inadequate product range. Surprisingly ‘good service’ also found itself among the relatively lower ranked image measures for foreign branks. (Table 1)
“Foreign banks will be heartened that their expansion efforts are being noticed by Chinese consumers. However, there is still work to be done to encourage more Chinese consumers to knock on the doors of the foreign banks”, commented Mr. Lee “To grow market share, foreign banks need to invest further in hardware such as ATM networks, and in more aggressive communications to develop stronger brand images.”
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing information, media information, online intelligence, mobile measurement, trade shows and business publications. The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com
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Table 1
Shanghai, Beijing, Guanghzou, Chengdu, Shenzhen
The 18 cities include Shanghai, Beijing, Guangzhou, Chengdu, Shenzhen, Shenyang, Dalian, Qingdao, Xi’an, Nanjing, Wuhan, Chongqing, Hangzhou, Tianjin, Dongguan, Xiamen, Fuzhou, and Kunming. The survey started April 2007 and it is the first time Xiamen , Dongguan, Fuzhou and Kunming are included in the survey.
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