When it comes to retail, it pays to get personal

Forget mass-market goods and services of yesteryear. Chinese millennials are placing greater emphasis on goods and services that make them feel valued and important.1  Not surprisingly, brands are responding.

In 2015, sportswear brand Nike launched an online service called NIKEiD that allows customers to customise the colour, design or performance features of their sneakers.2 This design-it-yourself service has boosted the brand’s bottom line, especially in the greater China market.

Not one to be left behind, e-commerce giant Alibaba has also pumped in resources to help brands develop and design products that meet Chinese millennials’ demand for unique products. In 2017, the company launched its Tmall Innovation Center, which enables brands to test products on a select group of consumers for a period, monitor their performance and then adjust their goods accordingly.

Brands such as US-based snack maker Mondelez International have teamed up with the innovation centre for mouth-watering results. It recently launched two China-exclusive Oreo flavours — hot chicken wings and wasabi — that became an instant hit with Chinese consumers3.

At Eastspring Investments, we get personal because we value our clients’ trust in us. We are passionate about what we do and are committed to deliver high quality investment outcomes to our clients. Find out more at www.eastspring.com

Sources:
1 https://www.fbicgroup.com
2 https://jingdaily.com/3-reasons-why-nike-ids-customizable-sneakers-are-more-crucial-than-ever/
3 https://www.alizila.com/alibaba-innovation-center-gives-brands-an-edge-in-china/