Chinese Market Research Articles

Using Digital Marketing Strategy and Perceived Value to Promote Brand Trust in Chinese Mobile Phone Brands

Over the past few years, China’s branded mobile phone industry has experienced significant growth, becoming one of the largest global markets. With fierce domestic and international competition, brand trust has emerged as a crucial factor influencing consumer purchasing decisions. Consumers trust mobile phone brands that excel in product quality, service, and value. This study explores how digital marketing strategies and perceived value enhance brand trust in Chinese mobile phone brands. The study formulates a research model and designs a survey questionnaire by reviewing relevant literature on digital marketing strategy, perceived value, brand trust, and Chinese mobile phone brands. Data is collected through an online survey using SPSS software to analyze the relationship between digital marketing strategy, perceived value, and brand trust. Finally, considering the unique characteristics of the Chinese mobile phone brand market and the research findings, the study provides practical recommendations for Chinese mobile phone brands. Keywords: digital marketing strategy, perceived value, brand trust, Chinese mobile phone brands

Penalized Sparse Covariance Regression with High Dimensional Covariates

Covariance regression offers an effective way to model the large covariance matrix with the auxiliary similarity matrices. In this work, we propose a sparse covariance regression (SCR) approach to handle the potentially high-dimensional predictors (i.e., similarity matrices). Specifically, we use the penalization method to identify the informative predictors and estimate their associated coefficients simultaneously. We first investigate the Lasso estimator and subsequently consider the folded concave penalized estimation methods (e.g., SCAD and MCP). However, the theoretical analysis of the existing penalization methods is primarily based on i.i.d. data, which is not directly applicable to our scenario. To address this difficulty, we establish the non-asymptotic error bounds by exploiting the spectral properties of the covariance matrix and similarity matrices. Then, we derive the estimation error bound for the Lasso estimator and establish the desirable oracle property of the folded concave penalized estimator. Extensive simulation studies are conducted to corroborate our theoretical results. We also illustrate the usefulness of the proposed method by applying it to a Chinese stock market dataset.

Research on the Optimization of Marketing Strategies Based on Brand Image: How Gucci Adapts to the Current Chinese Market

GUCCI is a world-renowned luxury brand that is loved by Chinese consumers. With the development of society and the advancement of science and technology, the competition of luxury brands has become more and more fierce, which has also led to the bottleneck of the sales of the GUCCI brand in the Chinese market in recent years. This article will explore the cultural background of the GUCCI brand, the marketing model for the Chinese market, and the current Chinese luxury market, and use the SWOT model to analyze, read literature, and study individual cases to optimize GUCCI's marketing strategy and derive its methods to adapt to the current Chinese market Through the exploration of this study, it is found that GUCCI can be sold through a combination of online and offline methods, develop brand ambassadors in multiple ways, and use social media for advertising. Set up a second-hand market and promote the concept of environmental protection. Set up an innovative experience camp to improve consumers' experience in the field of luxury brands. Adapting the GUCCI brand to the current development of the Chinese market.

Research on the Positioning and Development Strategy of Archaeopteryx Brand in Chinese Market

As people focus more and more on health, outdoor activities are becoming more and more popular, and Arcteryx, as a leading brand in outdoor activities, has received a lot of attention recently, this paper adopts the literature review and case law method around Arcteryxs itself, and researches on Arcteryxs market strategy, technological innovation, market adaption, market competitiveness, etc., one by one, and this thesis has certain reference value for the positioning and strategy of Arcteryx as well as other outdoor brands in the Chinese market, as well as in brand marketing, product innovation, consumer relationship management, and digital application. This thesis has certain reference value for Arcteryx and other outdoor brands positioning and strategy in the Chinese market, as well as in brand marketing, product innovation, consumer relationship management and digital application. It also points out that the brand recognition and product line concentration in Arcteryxs high-end market are relatively low, and the future should further explore the regional market performance, changes in consumer behavior and the application of virtual technology.

Segmenting the Chinese New Energy Compact SUV Market: A Latent Class Analysis of Consumer Preferences

The burgeoning new energy vehicle (NEV) sector in China, particularly the compact SUV market, presents a dynamic landscape for consumer preferences and behaviors. This study employs a latent class analysis (LCA) to segment the Chinese new energy compact SUV market, aiming to identify distinct consumer groups with homogeneous preferences and behaviors. Utilizing a comprehensive dataset of 6,720 consumer samples sourced from a reliable automotive statistics website, the study delineates two primary consumer segments: "Luxury Brand Preference Buyers" and "Normal Brand Rejection Buyers." The findings reveal that the former segment exhibits a marked preference for luxury brands, and tends to make fewer purchases, predominantly in the last quarter of the year 2023. In contrast, the latter segment shows a strong preference for another luxury brand and a balanced distribution of purchase quantities throughout the year, with a clear rejection of normal brands. These insights are instrumental for NEV enterprises to develop targeted marketing strategies that cater to the specific needs and preferences of these consumer segments, thereby enhancing market share, consumer satisfaction, and loyalty.

Prospects for the development of foreign economic activities of the Russia banking sector in China

Relevance. In modern conditions of economic uncertainty and difficulties of doing business in connection with the application of sanctions, banks need to look for effective tools and ways to increase the effectiveness of mutual cooperation with other states to overcome the prevailing circumstances. During the work, the main aspects of opening and functioning of a bank branch in China were considered, as well as competitors at both the macro and micro levels were analyzed. Based on the SWOT analysis, the paper identifies the strengths and weaknesses, opportunities and threats of introducing a branch of a Russian bank into the Chinese banking market. The study identifies promising regions for the development of foreign economic activity and forms a range of banking services that contribute to the sustainable development of the branch of the Russian bank in the foreign market.The purpose of the study is to substantiate the need to develop the foreign economic activity of a Russian commercial bank in China.Objectives: Based on a comprehensive analysis and acceptability of the Chinese banking services market, an assessment of the current state of PJSC Expobank, an analysis of competitors in the proposed region and the specifics of a specific location, to develop a plan for opening a bank branch in China.Methodology. The study is aimed at achieving this goal and is based on a review of scientific research by both domestic and foreign economists, as well as an analysis of a number of requirements for opening a bank branch in China.Results. In the course of the work, the process of opening a bank branch in China for carrying out activities was analyzed, the advantages and disadvantages of expanding the boundaries of presence were identified, and promising areas for starting foreign economic activity were proposed.Conclusions. The conducted research gives grounds to conclude that the expansion of the geographical presence in China will allow PJSC Expobank to gain access to world economic centers and expand the boundaries of its activities.

Measurement and Validation of Market Power in China’s Log Import Trade—Empirical Analysis Based on PTM Model and AIDS Model

China is the world’s largest importer of logs, possessing the scale to exert significant influence in the international market. This paper uses a fixed-effect variable coefficient Pricing-to-Market panel model to measure China’s market power in log import trade. It also utilizes the Almost Ideal Demand System model from an elasticity perspective to explore the market behavior characteristics of various source countries in China’s log import trade, thereby validating the mechanism of market power. The results indicate that: ① China’s main trading partners can be categorized into four groups according to their market power in the log import trade. Specifically, China holds superlative market power in log imports from Indonesia, Malaysia, and Myanmar; holds strong market power in log imports from Russia, the Democratic Republic of the Congo, and Mozambique; holds weak market power in log imports from Papua New Guinea, Equatorial Guinea, France, Germany, Australia, and New Zealand; and holds no market power in Japan, Cameroon, and the United States. ② As China’s expenditure on log imports increases, there is a tendency to purchase high-quality precious wood and a greater concern for the legality of market transactions. Consequently, China is anticipated to augment its imports from source countries with no or weak market power. ③ The simple price elasticity of log imports from each source country is negative. Source countries with stronger market power tend to increase prices to achieve higher total revenue, while those with weaker market power are more inclined to lower prices to achieve the same. ④ Log products from various source countries are complementary in the Chinese market, indicating that China’s substantial demand for logs relies on the simultaneous supply from multiple countries and diverse wood types. Based on the existence or absence of market power in China’s log import trade, this paper provides targeted insights into enhancing international market power and reducing trade losses.

A Research on the Development Status of Green Finance in China

China's green finance has become one of the important tools to promote sustainable economic development. This review first analyzes the environmental, social and governance (ESG) situation of chemical companies, which are high-energy-consuming and high-pollution companies that mainly use green financial instruments. Carbon emissions and pollutant emissions, safety of employees and surrounding residents, and legal and ethical issues were discussed to illustrate the chemical industries situation. Then, this paper focused on the application of three green finance tools, green financing, green bonds and green insurance in Chinese capital market. Finally, this paper introduces the green financial incentive policies launched by the Chinese government and where the policies still need to be improved. Through the review of the above aspects, this paper concludes that China's green financial development has made significant progress, but it still needs to keep improve green financial products and face the challenges of more applications in other industries.

Going Green: Effect of green bond issuance on corporate debt financing costs

This paper investigates the influence of green bond (GB) issuance on the credit spread of non-green bonds (NGBs) issued by the same firm. Based on Chinese bond market data from 2013 to 2021, our results show that GB issuers experience a decline in NGB credit spreads after issuing GBs, indicating that “going green” can lower corporate debt financing costs. This beneficial effect is more salient among firms with lower bond liquidity, supporting the “bond liquidity story” that investors anticipate increased bond liquidity following GB issuance and thus charge lower credit spreads. In contrast, we find limited evidence for alternative explanations such as the “default risk story,” “halo effect story,” or “information asymmetry story.” Our research highlights the financial benefits of GB issuance and contributes to related literature on the economic implications of green finance. The findings also offer valuable insights for policymakers and corporate executives seeking to promote sustainable investment.

PMO factor crowding and returns: evidence from China

ABSTRACT Using data from the Chinese stock market from 2000–2023, we first re-examine the Pessimistic-Minus-Optimistic (PMO) effect induced by the abnormal turnover rates in the A-share market. Next, we construct a crowding index of the PMO factor. And the findings show that the crowding index of the PMO factor could have a significant negative impact on the future PMO returns and vice versa, considering the realistic strict short-selling constraint. These mutual influences are short-term and will quickly decay. However, we do not observe a similar pattern in the ideal context of no restrictions on short-selling. This implies that relaxing restrictions in the stock market is beneficial for reducing mispricing errors in China to some extent.

An Empirical Study on Asset Pricing Models Based on The Chinese A-Share Market

Based on the analysis of the A-share markets in Shanghai and Shenzhen Stock Exchange from 2000 to 2023, this paper systematically evaluates the applicability and explanatory power of the Capital Asset Pricing Model (CAPM), the Fama-French Three-Factor Model (FF3) and the Fama-French Five-Factor Model (FF5) in the Chinese market. The study finds that although CAPM has some explanatory power in the early stage, the three-factor and five-factor models can better explain the cross-sectional changes in stock returns as the market develops. In the descriptive statistics, each factor's volatility and correlation reveal the Chinese market's unique characteristics, such as the relative strength of small-cap and growth stocks. In the regression analysis, the results of the Fama-MacBeth regression showed that the significance and explanatory power of the market factor, size factor and value factor were different in different models. Further robustness analysis reveals the COVID-19's impact on the model's performance through the sub-period analysis. This paper provides a new perspective on understanding the asset pricing of China's A-share market and a theoretical basis for investors' investment decisions. It also points out the limitations of existing models in explaining emerging market equity returns. It suggests that future research can deeply explore the performance of more factors in different market environments.

The Changes of Consumer Psychology and Price Sensitivity in Uncertainty: A Case Study of Fast Fashion Brand ZARA

In recent years, there has been a collective decline in the development of fast fashion clothing brands in the Chinese market. Taking ZARA as an example, its parent company Inditex Group has undergone large-scale store adjustments globally in the past two years, especially in the Chinese market, where the number of ZARA stores has decreased by nearly half compared to four years ago. While Inditex's global revenue has grown, there has been a significant decline in revenue in mainland China. Therefore, understanding how the fast fashion industry was accepted by the Chinese market in the past and why it is now being excluded has gradually become important. For the clothing industry, market decision-making power has shifted from clothing merchants to consumers, and consumer psychology has undergone certain changes, and in fact, they have gained some bargaining power. As a product aimed at the general public, fast fashion brands have lower customer loyalty. Customers are more sensitive to price changes. In the rapidly changing and uncertain environment, the drawbacks of the fast fashion brand model have begun to emerge: convergent styles, unstable channels, and environmentally unfriendly production models, etc., which no longer have sufficient competitiveness in the current market. Therefore, this article intends to use literature research and case analysis methods for research, and to address the above issues, some suggestions are proposed, hoping to help fast fashion brands retain and expand the Chinese market.

Investigation on Influence Factors of the C-REIT Market: Applying the Fama-French Three-Factor Model

This research paper has applied the Fama-French Three-Factor Model to the China Real Estate Investment Trust (C-REIT) market over a two-year period from June 2022 to June 2024. The innovation is recognized as the C-REIT market was established in 2021 with the first 9 REITs issued and few researches were conducted on the C-REITs. The study obtained data from the Wind database in the after-COVID period and concluded that the model fits well for the behavior of the Chinese REIT market. The market premium factor is found to be positive, while the size factor (SMB) is negatively significant, and the value premium (HML) is positively significant. This suggests that REITs with smaller market capitalization and those with a higher book-to-market ratio are more likely to contribute to the portfolio's excess returns. The intercept in the regression is statistically significant and that implies that there may be additional factors that are not captured by the current model. As such, the paper advocates for further research into multi-factor models to explore potential factors.

To What Extent Does Blind Box Marketing Affect Peoples Consuming Behavior?

Blind boxes, as an emerging industry, have gradually opened the Chinese market in recent years, and are sought after by consumers and various industries. It is a unique box that contains toys or other commodities, and people don't know what's inside until they open it. Meanwhile, continuous innovation has created a unique blind box marketing strategy, which uses consumers different motivations effectively to promote purchasing behavior. Based on the theory of consumer behavior and the strategy of blind box marketing +4p marketing theory (combined with AISAS model), this paper takes psychological motivation, demand motivation and investment motivation as intermediary paths to explore the impact on consumer purchasing behavior. Through the analysis of literature, questionnaire and tools such as SPSS25.0, the conclusions of relevant research are drawn: the effective combination of blind box marketing and product strategy can have a significant positive impact on consumers' purchasing behavior. The tremendous positive impact of price strategy on consumers' purchasing behavior is based on the consideration of different age groups. Place strategy and promotion strategy can only serve as the intermediary path between consumers' purchasing behavior, but cannot have a significant positive impact on them. Finally, through the above research, some suggestions for blind box marketing are provided.

Self-transcendence: Design Criticism in the 1928 Shanghai Exhibition of National Products

Abstract After establishing the Shanghai port in 1843, Western machine-made products inundated the Chinese consumer market, disrupting the local Chinese economic system. To foster the advancement of national industries, the Nanking nationalist government held the Ministry of Industry, Commerce, and Labour’s Exhibition of National Products in 1928, providing a platform for public discourse on the design of national products. This article analyses the progression of three representative types of early design criticism that emerged from the Exhibition of National Products. These criticisms examined the design’s economic benefits, responsiveness to cultural needs, and influence on shaping social consensus. Their progressive development can be characterized as a form of self-transcendence, indicating a move by critics beyond past limited understandings of the value, sphere of influence, and design’s role in society. Their focus transitioned from the economic interests of minorities to the diverse needs of broader social groups. In the process of self-transcendence, these design criticisms expanded the horizons of designers’ work. They facilitated collaborations between design and various industries, including production, consumption, and education, influencing broader socioeconomic and ideological fronts.

Spread efficiency of energy demand in the industrial chain: a perspective from economic distance

This paper investigates the spread efficiency of energy demand in the industrial chain based on the input-output method. The concept of intersectoral economic distance and spread efficiency was introduced to formulate the energy demand spread functions. Then, an empirical study was conducted based on China's 2017 input-output data and nearly 3,500 companies were listed in the Chinese A-share market. The results show that the sectoral average spread time is 32.75 days. Manufacturing plays a central role in the spread of energy demand. In the short term, the logistics sector has the greatest pulling effect on energy demand, while the electric power sector has the greatest impact on energy demand in the long term. Energy demand caused by exports is greater than consumption and investment. Finally, sectoral economic distances and actual spread functions for 9 main energy sources are provided to help us better predict energy demand.

Expectancy Violations and Discontinuance Behavior in Live-Streaming Commerce: Exploring Human Interactions with Virtual Streamers.

Virtual streamers, as a typical application of AI-enabled digital humans, are increasingly being utilized in live-streaming commerce due to technological advancements and industry innovations. Although virtual streamers present several benefits, there is potential for adverse effects when they do not align with consumer expectations. Drawing upon expectancy violations theory, this study developed a theoretical model to explore whether and how consumers' expectation violations during human-virtual streamer interactions affect consumers' discontinuance behavior. Through an online questionnaire survey of 307 Chinese consumers with prior experience interacting with virtual streamers, this study used a partial least squares structural equation model to analyze the research model. The empirical results indicated that professionalism expectation violation, empathy expectation violation, and responsiveness expectation violation positively influenced consumers' distrust and dissatisfaction, which subsequently led to discontinuance behavior. This study contributes to the literature on live-streaming commerce, human-AI interaction, and expectancy violation theory. Furthermore, the findings offer valuable insights for practitioners in the field of live-streaming commerce by enabling them to formulate preventive or remedial strategies to mitigate potential negative outcomes when implementing virtual streamers.

Nondestructive and quick differentiation between loupe-clean low-alkali natural and hydrothermal synthetic aquamarines: Constraints of infrared spectroscopy

A considerable increase in the price of natural aquamarine has led to the emergence of hydrothermal synthetic aquamarine as a cheap substitute in the market. In this study, comparative analysis was conducted between natural aquamarine obtained from Altay Prefecture in Xinjiang, China, and hydrothermal synthetic aquamarine in the Chinese market to distinguish them with loupe-clean clarity. Nondestructive tests including microscopic observation, X-ray fluorescence spectroscopy, infrared spectroscopy, ultraviolet–visible–near-infrared spectroscopy, and Raman spectroscopy were conducted. The two samples were low-alkali aquamarine, dominated by type Ⅰ H2O, and the infrared spectra showed similar water-related peaks, exhibiting weak absorption bands related to Cl− at 2736 and 2449 cm−1 and CO2 in the crystal channels at 2358 cm−1. Apart from the strong irregular and distinctive growth patterns, infrared absorption bands at 3313 and 4060 cm−1 due to the N–H bond (derived from ammonium halide used in crystal growth) vibrations were found to be present only in hydrothermal synthetic aquamarine. This study reveals implications for identifying hydrothermal synthetic aquamarine when the internal features of loupe-clean aquamarine are not obvious.

Is the Chinese stock market efficient? Evidence from a combined liquidity trading strategy

PurposeThis study examines the stock market efficiency in China to offer trading strategy guidance to investors and efficiency evaluation insight to policymakers.Design/methodology/approachThis study examines the stock market efficiency in China with a new combined liquidity trading strategy by blending technical analysis into a liquidity buy-and-hold strategy.FindingsOur results show that the combined strategy generates significant excess returns in the whole sample period, suggesting that the Chinese stock market is not consistent with the weak form efficient hypothesis. In addition, the combined strategy yields more significant risk-adjusted excess returns after the 2004 split-share reform, indicating the stock market efficiency in China does not exhibit a distinct upgrade after the reform. Our further test results reinforce the main conclusions after taking transaction costs, market states, short-selling reform and other issues into consideration.Originality/valueOur study contributes to the literature in two ways: First, we shed light on the mixed documented results about the market efficiency form in China. Second, we contribute to the mixed relation between the 2004 split-share reform and market efficiency in China.

Understanding factors determining Chinese consumer’s willingness to eat cultured meat, insect, and plant-based proteins

Understanding factors determining Chinese consumer’s willingness to eat cultured meat, insect, and plant-based proteins