Premium FMCG brands go mass market in China

Viveca Chan, chairman and CEO of WE Marketing Group in China, told Campaign that global brands are getting more localised and creating entire product ranges and price points just for that market. Shiseido has done just that - crafting an under-eye solution exclusively for China after its research found that Chinese women were particularly concerned about puffy eye bags, different from the concerns of Japanese women on its home turf.

Senz Chocolates from Belgium also has its sights squarely set on China, opening its own manufacturing facilities in Shanghai, Beijing, and Guangzhou this year. Liu said this will lower the chocolates' production costs and change the brand's strategy instead of banking on the 'imported' craze for foreign goods in China. This move is testament to the company's establishment of its own distribution channels in China, which will push retail prices lower since no import tax will be incurred.

In addition, Jeff Ma, managing director of TBWA Shanghai observed that even luxury brands such as Louis Vuitton and Gucci have adapted their brands for Chinese consumers with simpler designs, lower price points and different retail formats to appeal to the emerging middle class in the country.

With so many international brands wanting a slice of the Chinese pie, will 'masstige' be the  marketing buzzword in China from now on?