6 important lessons to learn if you want to make money in China

Reuters

China's economy is the second largest in the world. The country presents a massive opportunity for western brands to make money. However, many of them still seem out of touch with the country.

That's why Landor — a global brand consultancy — released six tips on how western brands can perform well in China.

It was compiled by brand consultants based in the UK and across China, using wide ranging studies from organizations including Credit Suisse, The Economist, and Brandlab.

Here are the six themes Landor thought were most important for western companies looking to be successful in China.

1. Mind the (generation) gap.

Landor

Landor described the generation gap between those born in China before 1976 (when former communist party leader Mao Zedong died) and those who were born after as a "generation chasm." Values, fears, tastes, and interests vary greatly between the two groups.

A 2015 study by Iconoculture revealed that the most important values for those born pre-1980 were "thrift," "practicality," "belief," "wisdom," and "reality." In stark contrast, the generation born after 1980 valued "convenience," "relaxation," "beauty," "image," and "friendship."

2. Be everything to everyone.

Landor

Western millennials like big brands that do one thing really well, such as Coca Cola, WhatsApp, Oakley, and Samsung.

However, a Brandlab study used by Landor showed that Chinese millennials think differently.

They want one brand that does everything. They care more about the number of different products the one brand can produce than the quality.

A Chinese millennial from the study, called Pair, said: "It should be all of life, so you can choose any part of the brand for your life." Another participant, Chritina, said: "People choose one company, one brand ..."

Big Chinese brands already dominate different, unrelated areas.

Landor

See the rest of the story at Business Insider