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Australian companies must guarantee supply to keep Chinese customers: New Monash Business School study

Posted on Mar 13, 2018

New Monash University research reveals Chinese customers want reliability and guarantee of supply when choosing Australian brands. The ABC (Australian Brands in China) Index 2018, which examines the ‘health’ of Australian brands in China, reports Coles, Crown Group, Qantas and Weet-Bix as the top four of the ABC Index’s most reliable Australian brands category, while health and baby formula brands were among the lowest ranking in the list owing to supply glitches and their limited availability of product stock.

The ABC Index also reports 74.3% of 18 to 35 year olds care more about a brand’s social responsibility than how on-trend it is, whereas trendiness is valued highly among lower income groups more so than quality with 77.4% of these respondents favouring trends to quality.

“This creates a targeted opportunity for brands looking to launch trend-driven products into this market,” says Digital Crew founder and co-director Ophenia Liang.

Ms Liang said conducting business in China is daunting given the size of the market with a 1.3 billion population. She said the country presents a lucrative opportunity for any Australian company, but they need to get the right advice, be well-researched, have regular and up-to-date market intelligence and be precise in targeting their markets.

“China is a significant and growing market for Australia and it is important for brands to fully understand Chinese consumer behaviour if they hope to succeed.

“This research closes the knowledge gap that Australian brands have between what they think they know of this market and what is in fact happening in terms of Chinese consumer behaviour,” Ms Liang said.

The study by Dr Eugene Chan from Monash University’s Business School and financed by Australian digital marketing group Digital Crew, canvassed 70 Australian brands and surveyed 5,464 Chinese men and women (aged from 18 to 57 years) across the six Chinese regions of Hebei, Beijing, Shanxi, Tianjin, Guangdong and Shanghai.  The research is the first of its kind to monitor Australian brands in China.

For a copy of the ABC (Australian Brands in China) Index 2018 see