The greening of Chinese consumers
Environmental consciousness is rising in China, and the government increasingly sees environmental issues as central to China's successful development.
“This will open up a lot of new opportunities for New Zealand exporters who can leverage off New Zealand’s clean and green image,” says Jeff Shepherd, trade commissioner in Shanghai for New Zealand Trade and Enterprise (NZTE). “At the moment environmental concerns directly affect the purchasing decisions of only a small proportion of Chinese consumers the wealthy, the ones living in the main cities, the better educated,” says Mr Shepherd.
Most Chinese consumers, however, are still more interested in price and food safety than the environment. All the same, last year MasterCard reported that 48 percent of China’s affluent consumers said environmental considerations were an important factor in determining which brands to buy. This is expected to increase.
Environmental awareness, together with an inclination to take action, is spreading on the back of a huge government push, media attention and simple observations of the effects that intensive industrial development is having on local environments.
Awareness will also get a big boost with the Shanghai Expo 2010 which has chosen the theme of “Better city, better life”. New Zealand will have a $30 million pavilion at the expo.
“The Chinese Government is introducing new environmental laws and regulations at great speed,” Mr Shepherd says. “This new environmental awareness represents a great opportunity for New Zealand exporters to play to their unique strengths,” Mr Shepherd says. “Most of the time New Zealand origin is a significant advantage, especially for foods, beverages and natural products.”
This week, the UK Guardian reported on the latest ambitious sustainable energy provisions that the Chinese government has passed. Wind and solar power generation will get a massive boost, with the goal of producing a fifth of all the country’s energy from renewable sources by 2020.
Darren Burns, Managing Director of international public relations firm Weber Shandwick in Shanghai and Guangzhou, says New Zealand has a reputation of being clean and green in China. “It’s an advantage New Zealand has already and there is a market for that.” He suggests exporters should prominently feature New Zealand in their labelling.
But Mr Burns also points out that Chinese attitudes to the environment and sustainability are different from those in the West – like capitalism, they have what’s called ‘Chinese characteristics’, and New Zealand exporters need to understand how and why.
Market research company Jigsaw has identified a fundamental difference between Chinese and Western views on what environmentalism means. For the Chinese it means ‘modern and developed’, ‘well-organised and well-planned,’ which Jigsaw says is very different from the Western ‘back to nature’ concept. The big five sustainability trends to watch in the Chinese market, according to Jigsaw, are: food safety, affordability, weight-loss, beauty and traditional Chinese medicine.
NZTE’s Jeff Shepherd says New Zealand exporters need to bear in mind that the first question Chinese consumers still ask about a product is “Can I afford it?” Then they move on to brand choice (brands often are indicators of food safety), and only afterwards to considerations of additional benefits, such as personal health improvement.“The health benefits are likely to be more important than issues such as climate change, animal welfare and the environment, ” reminds Jeff Shepherd.
One successful initiative which combines sustainability and health consciousness is the BioVittoria company’s processing plant in Guilin, Guangxi province, where New Zealander Garth Smith and his Chinese partner Lan Funsheng have been developing the luo han guo industry. The luo han guo fruit is processed into the calorie-free natural sweetener PureLo, which is sold internationally. Rebecca Macfie, a reporter for The Listener, travelled to China on an Asia:NZ media grant and interviewed the business partners.
“The luo han guo project seems to have the makings of a successful New Zealand-China venture that others could learn from,” Rebecca said. “It has tapped into a unique local resource, built a strong cross-cultural partnership based on respect and trust, has the potential to bring significant benefits to both Chinese and New Zealand stakeholders, and is in tune with China’s need for sustainable rural industries.”
The signs are there that the Chinese government continues to take important steps to encourage sustainability and a more efficient use of resources, not least by setting aside a significant share of its economic stimulus package for sustainable energy projects and low carbon investment. Businesses that offer sustainable or “clean and green” products will have a better chance to influence consumers on the back of these government policies.
Mike Booker
Images sourced under Creative Commons licence except Kirin Tea billboard and recycling bins by Socialtechnologies.com; luo han seedlings by Rebecca Macfie.
