Written by Renee Hartmann of Hotpot Consulting
US media coverage of China frequently focuses on environmental problems, but rarely investigates how Chinese consumers incorporate environmental concerns, health and nature into their lifestyles.

Chinese consumers crave a sanctuary from daily overdoses of pollution, rampant urbanization, traffic and food safety issues, and are gradually adopting more sustainable lifestyles to cope with the pressure and stress of every day life.

Like Bamboo in the Spring: LOHAS growth bests the West
The convergence of environmental pressures and rising incomes is resulting in a much more rapid ascendance of LOHAS (Lifestyle of Health and Sustainability) in China than occurred in more advanced LOHAS markets such as the United States. 17% of consumers in China’s top five cities -- a combined population of more than 60 million -- describe themselves as LOHAS-focused, versus 19% of American consumers, despite the significant head start of the US market’s LOHAS consciousness.

And China’s LOHAS consumers are not price sensitive – nine out of ten consumers would be willing to pay 20% more on average for sustainable products, and are looking for increased product choices and availability.

Chinese LOHAS consumers are growing in number, are hungry for sustainable products and willing to pay higher prices – so why aren’t all sustainable brands investing like mad in the China market?

Complications
It’s complicated. For some brands, government product approvals and regulations create barriers, for others the lack of existing distribution channels requires exceedingly high levels of investment. Some are concerned with Intellectual Property issues and product quality, while others are just plain intimidated by the China market.

Are these concerns justified? Are they enough to prevent your brand from pursuing the growing China market opportunity, even as opportunities in other countries are shrinking?

The answer is: it depends – on your industry, your product, your positioning and, most of all, your appetite for adventure. 

For example:
- The beauty industry is absolutely booming in China, and has a relatively strong distribution channel already in place. However, government regulations and entry requirements can be onerous.

- Luxury is in. LOHAS products are often associated with luxury in China, which is a good thing for a market that is gobbling up luxury products – both home and abroad. Western tastes like wine and chocolate fall into this category and also take advantage of Chinese customs of gifting and “showing face”.

- Food safety is a huge issue in China. High-income urbanites are actively searching for safe food options that ease anxiety and promote health. Distribution is widespread in this sector, but supply chain issues can often be thorny.

- Children are kings. Literally. Given China’s one child policy, China’s children call the shots, happily emptying the six adult wallets available to them. Toys, bottles, apparel, education, and food – you name it, parents (and grandparents) want the best for their children, and will spend to get it. Chinese shopping habits are ingrained, and will play heavily into your distribution strategy in these industries.

If the brand fits…
Yes, China is complicated. It is a big country, with a widely disparate population going through tremendous changes at a breakneck speed. But, if you play it right, it can be very lucrative for your brand, also providing ample opportunity to give back to the country and enable positive change, which is good for China and good for the world.

How do you navigate all these issues?
HotPot Consulting, Greennovate and The Wellness Works have teamed up to host a LOHAS China Insight Tour this September 20th and 21st to cover issues related to China Market Entry for Sustainable brands. Content will cover legal issues, LOHAS consumer insights, managing supply chain, distribution channels and more. You will hear from experts in many sectors, learn from businesses operating in the market and meet like-minded local distributors and partners. Visit http://goo.gl/bBKz3 for more information or contact renee@hotpotconsulting.com.

The LOHAS China Insight Tour is timed to coincide with China’s largest ECO tradeshow – EcoLifestyles from September 16th – 18th (www.ecolifestyles.cn) which gives sustainable brands an opportunity to meet more than 6,000 business attendees and more than 12,000 LOHAS minded consumers.

www.hotpotconsulting.com
www.greennovate.net
http://www.the-wellness-works.com