Successful Gifting Strategies in China : Analysis of the Millennials in the Food Market

Details

Supervisors

Kervyn de Meerendré, Nicolas

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion

Abstract

China holds many marketing opportunities that are yet untapped. Among those, the cultural phenomenon of gift exchange endorses a major economic and cultural role. Under the influence of Confucianism, the Chinese rely on their social networks (guanxi) rather than on institutional laws for protection. The best way to develop their network (guanxi) is through gifts. Although guanxi activities are one of the main reasons to offer gifts among the working Chinese, the millennials think that a gift is first an intermediate to express their feelings. Consequently, they will consider the message they want to transfer to the recipients, and the occasion of the gift exchange. The type of the gift depends on the receiver, which has an impact on the preferred features of the gift. There are 5 clusters. The family, the close friends, the remote friends, the lovers and the guanxi practices. As family is the most important social unit, gifts for the family members are the most important. Alimentary gifts are often exchanged with the family and the close friends during events, such as traditional festivals. However, for the remote friends and the guanxi practices, the alimentary gift is more formal, and must respect the rules of the etiquette (nice packaging, suitable price…). A brand should also consider the occasion of the gift exchange, as the symbolic value behind the event drives the purchases of gifts by the millennials. In all circumstance, the Chinese need to trust a brand and have the guarantee that the food is safe to consider offering the product as an alimentary gift. Brand awareness is therefore crucial. Also, the promotion tactics for such gifts should be joyful, simple and yet present an unexpected touch to attract the attention of the millennials. Overall, understanding the particularities of the gift exchanges activities might be very lucrative for the companies, as it is estimated that Chinese spend 20% of their household income on gifts.