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Business / Industries

Consumers have healthy respect for brand names

By Yao Jing (China Daily) Updated: 2014-02-26 08:46

Consumers have healthy respect for brand names

China's consumer health market is expected to experience an upswing in the next five years, The Boston Consulting Group said on Tuesday, saying that rising health consciousness in the world's second-largest economy will spark business opportunities.

China's growing health and wellness market is poised to reach nearly $70 billion by 2020, said BCG's Center for Consumer and Customer Insight, which surveyed 2,600 middle-and upper-income consumers aged 18 to 65 from across China.

Consumers have healthy respect for brand names

Consumers have healthy respect for brand names

"We project an average year-on-year growth of about 11 percent for the over-the-counter treatments segment and vitamins, minerals and supplements market between 2014 and 2020," said Wu Chun, who is a partner and managing director at BCG Greater China.

The survey said that Chinese consumers are willing to pay more for brand names and higher-quality products.

Factors behind the trend include rising incomes, stressful effects of urbanization, an aging population and ongoing issues with food safety and quality.

"Almost half of the Chinese consumers we surveyed said they feel subpar because of lifestyle factors such as work pressure, family obligations and long work hours," said Carol Liao, a BCG senior partner and co-author of the report.

Chinese consumers are not only seeking treatments but also prevention through exercises, diet and VMS products.

More than 60 percent of consumers both from the lower economic spectrum (with annual household incomes of 120,000 yuan to 240,000 yuan) and the upper one (with annual household incomes of more than 240,000 yuan) said they believe that "taking VMS and OTC products is effective and convenient".

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