Customer satisfaction survey in China

Customer satisfaction survey in China

Why you need Customer research in China

China has the largest single potential consumer market in the world and the forecast of its economic growth rate remains strong in the next two decades. Therefore, China is one of the most popular markets for different international companies, and this means the China market is more competitive than many other countries. Customer satisfaction survey in China should allow you to track the performance of your brand in this crucial market.

customer research China

In order to stay ahead of competitors, it is critical to gain market share and improve market competitiveness of your company. Customer research and customer satisfaction survey can offer you better understanding of customers’ behavior, their preferences, their satisfactions and so on, which can help you to establish a long-term relationship with customers and build loyalty. Most important, cost-effective customer research can focus on creating and reinforcing positive experiences to maintain existing customers and create new customers for your organization. There are three very different approaches for measuring customer satisfaction: post-purchase evaluations, periodic satisfaction surveys, and continuous satisfaction tracking. The complex socio-economic situation in China, with its huge population and various cultures from place to place, makes customer research and satisfaction research more complicated. Thus, it is time-consuming and labor consuming to carry research by yourself. So our job is offering you deeper insights about customers with effective, timesaving and accurate methods.

What Daxue Research can offer?

Proven Methods for customer satisfaction survey in China

We use multiple precise and professional methods for customer research and customer satisfaction survey. These methods are: focus group, desk research, interviews including qualitative interviews and quantitative interviews, in-depth and in-house interviews, as well as sentiment analysis etc.

Our team

We are a professional consulting team in China with more than 5 years of experience and consisting of a multinational staff, which can give your different perspectives for better understanding customers in China. We are devoting ourselves to building a developed social network with famous universities both domestic and overseas, and also with a large number of academic institutions.

Our successful past cases

With the assistance of our optimized methods and our professional team, we have completed many projects for companies from diverse areas and sectors. For example, we helped an infant formula producer conduct market research and we also helped a luxury brand develop their strategy in China. Moreover, we provided service for a pharmaceutical company from Europe to understand the China market by carrying out customer research and investigating customer satisfaction.

Customer satisfaction survey in China

More reference here and here

Market Research on Car sales in China

Market Research on Car sales in China

[more about market research in China]

China` spectacular economic growth over the past 20 years has been reflected in the emergence of the world`s fastest growing consumer market and a vibrant, burgeoning middle class. As incomes in China have risen, so have Chinese consumers` interest in products that were previously out of their reach, for example, cars. In 2013, car sales in China exceeded 22 million vehicles and this figure made China the first country to sell more than 20 million vehicles.

market research on car sales in China

Car sales in China will reach historical highs

Although China`s automotive market growth is cooling down, however, car sales in China is still expected to reach 31 million new registrations in 2020 with a much higher annual increasing rate of 6% than other economies in the world. It is not surprising that car manufacturers are placing China at the very center of their long-term growth strategies.

Currently, Volkswagen is the undisputed sales leader in China. However, within the market, there are segments that are still expanding much faster, most notably luxury car sales that are aimed at China’s ballooning army of super-rich people. According to market research, the luxury car market in China has enjoyed a growth rate around 37%.

car sales in China

Still huge potential for car market in China

Along the path to be mature, there is still plenty of opportunities for other local foreign car manufactures to capture market share in China. The sheer expanse of its geography, the complexity of its sales channels and the rapid pace of urbanization create chances in 150+ cities in China. Considering market divisions and product distributions, car manufacturers need to address a diverse mix of values to influence consumers` buying decisions.

There are several trends for automotive market in China in the next decade. First, sales of sport utility vehicles (SUVs) will triple, although sedans will remain the largest segment. Second, there will be more second-time buyers and they will buy more high-priced cars. Third, the volatile growth rates for new cars observed over the last two decades are likely to continue. What is more, consumer behavior by region and car-model preference will vary greatly.

China` economy is expected to continue to grow at 7% to 8% yearly in the next 10 year. And the number of high-income urban households with over 80,000 RMB a year will expand to 58% of the population in 2020. Higher incomes plus low auto penetration now suggest that the market is far from saturation. The expansion of road systems will continue to stimulate consumers` expectation of self-driven journeys and thus, the demand for automotive and the car sales in China.

car market in China

Selling cars in China require market understanding

Nevertheless, regardless of the expected development, car manufacturers and dealers should not ignore that the volatility in Chinese car market and of car sales in China, combined with chronic overcapacity, has brought challenges to doing business in China. Car manufacturers should put more emphasis on understanding consumers` needs and behaviors, for example, increasing weight on quality and safety. Recent market research shows that Chinese consumers rely predominantly on four factors when buying cars: friends and colleagues (49%), family members (64%), manufacturer websites (53%) and social media (72%). A suggestion could be that auto manufacturers and deals turn their investment on TV to strong social media sites for further branding.

Global manufacturers will keep on investing in China regardless of the debate and content themselves that half a loaf is better than none, especially when the loaf is much bigger than that in other markets.

Matthieu David about Senior Market in China – Daxue Consulting

Matthieu David Experton, founder and CEO of Daxue Market research China, talks about the Senior Market in China for Thoughtful China.

How to reach the China’s silver generation ?

Market research China: corporate training outsourcing in Shanghai

Market research China: corporate training outsourcing in Shanghai

The market research has been conducted to give a rough estimation of the market size of corporate training in Shanghai for SOEs (State Owned Enterprises). Such “corporate training” refers to those can be outsourced by enterprises to training outsourcing companies.

What is corporate training outsourcing?

Corporate training is often competency based and related to the essential training employees need to operate certain equipment or perform certain tasks in a competent, safe and effective manner. The primary role is to ensure an employee has the knowledge and skills to undertake a specific operation to enable an organization can continue to operate. Certain companies create customized training plans for client companies, Corporate Training outsourcing, including registration, logistic back-up, curriculum design, program management and class assessment etc.

Demand for corporate training outsourcing is growing in shanghai

The SOEs in Shanghai can be possibly divided according to different industry features and thus have distinct demand for corporate training. Therefore, it is essential to group all the SOEs after figuring out all the potential demand for corporate training.

Our market research mainly focus on the corporate side and look at features of different enterprises which determine their need for corporate training: (boldface shows key words)

  • Enterprises are on the “up-curve” and have strategic plans for the coming years. They try to either search for proper talents to fill the job demand or need corresponding corporate training to train more capable employees.
  • Enterprises are seeing from their own performance appraisal report or competency model (a model that fully evaluates inner motivation, knowledge skills, self-image and social role characteristics) and find the reasons of bad performance and shortcomings of employees to see whether training demand is emerged.
  • Enterprises that have recruited a great number of freshmen, fresh graduate for instance, or new coming employees need systematic induction training.
  • Enterprises own a great number of grass-roots employees such as piece workers who require standardized qualification and need corporate training on a large scale.
  • Enterprises that are small or medium sized or have immature corporate structure urge to concentrate on immediate production growth and cost minimization, so immediate outsourced training services are in bad need.
  • High-tech enterprises that take special social and political responsibility, offer public services and have close connection with government, such as information networks, public transportation, grain reserves, usually own their systematic internal training programs and do not need to outsource for its most secret sections but outsource for other purposes like team building or team cohesiveness.

For simplicity and rough estimate, we conduct our market research by leaving out consideration of the second type enterprises whose demand for corporate training are mainly based on enterprises’ own growth and development needs, which are also determined by other not representative internal and external factors.

In government’s perspectives, SOEs in Shanghai are divided according to their different functions:

  • Competitive enterprises: market oriented and the aim is mainly to maximize the profits, earn competence and market power, better if social welfare improves.
  • Functional enterprises: occupy national special resources; mainly keep up accomplishing assigned ad-hoc and strategic tasks like achieving technical improvement, infrastructure improvement.
  • Public services enterprises: aim to maximize social welfare; guarantee city stability and normal operation and essential public services, such as public transportation, environment protection and water supply etc.

Combined with the demand analysis, pre-market research and typical enterprise categoriesabove, SOEs that need general corporate training outsourcing in Chinaare roughly divided below according to business size, industries and development phases:

  • Competitive enterprises that are still at their growing stage in China
  • Large companies that regularly outsource corporate training
  • SMEs concentrate more on training but with less capital invested in than large companies.

Apart from the above enterprises, functional enterprises and public service enterprises require more specified training outsourcing services:

  • For functional enterprises, they call for team building and enterprise culture construction related training to enhance team cohesiveness.

Reason: such enterprises require great unity and team cohesiveness to reach the targeted goal. Corporate training should be adapted to this goal.

  • For public service enterprises, they call for service standardization related training, except for too professional skills and services.

Reason: such enterprises perform to serve the country and a set of standard and scientific operation and service line is extremely significant, except for too professional skills and services.

Methodologies used for this market research in Shanghai

Our market research’s goal was to find out the total number of SOEs in Shanghai and the equivalent GDP shares in different groups. We need to find out the types of companies which have most demand on corporate training in China, how often the training services will be purchased by the same company in a certain period (one year), how soon the company will repurchase the product, how much on average each service package costs and finally evaluate different groups in this similar way. Addition to the traditional way of calculating the market size, we tend to consider mostly its substitutes, such as internal training programs. The basic and general computing method is:

The number of target enterprises X the purchase per enterprise in a year X the unit price of corporate training outsourcing service / purchase frequency = rough estimate of market size for corporate training outsourcing

The target enterprises will be divided into SMEs and large SOEs and the two sets are divided again according to their different functions. Therefore, Shanghai’s companies will be divided into 6 groups (match the calculation in the next section):

  1. large competitive enterprises
  2. large functional enterprises
  3. large public service enterprises
  4. medium and small competitive enterprises
  5. medium and small functional enterprises
  6. medium and small public service enterprises

With minor adjustment to the figures we work out –the adjustment for existing substitutes, we can get a rough estimation of the market size in Shanghai.

Market research’s key finding and analysis of corporate training market in Shanghai

corporate training market research China

Note that all the numbers above was based on Shanghai economy in 2011.

  • GDP of SOEs is measured at 20% of overall GDP in Shanghai, up to 400 billion RMB.
  • The distribution of three typical types of SOEs is derived by 42 representative SOE sample in Shanghai.

So the rough estimated proportions of three types are:

  1. competitive enterprises: 71.4%
  2. functional enterprises: 19.1%
  3. public service enterprises: 9.5%
  • The average cost of corporate training outsourcing of large SOEs are about 2% of their GDP and the cost contains internal corporate training. If SOEs assign a large part of training outside the company, we can give an approximate estimation of corporate training outsourcing costs of about 1.0-1.5% (excluding the internal training programs). For smaller companies and companies at their growing stages, the costs could be slightly lower, which is estimated to be around 1.0% (we try to ignore the difference that the smaller growing enterprises make, to regard all these kinds of firms as 1.0% of GDP).
  • The frequency to outsource for SOEs is lower than 1 product per year. For simplicity, we take 1 per year as the case.
  • Based on previous analysis on the demand of different types of corporate training, we simply take general training as 1 unit of training at a time, and specified training for functional and public service trainings are respectively 0.5 in proportion.
  • The scale of large SOEs is measured mainly by GDP, at least grow over 300 million RMB, taking up over 70% of all SOEs. However, for most of public service enterprises, the bottom line is 150 million RMB, taking up nearly 100% of all public enterprises. (National policy, 2003)

Therefore, to take full advantage of all the statistics and rough estimation, we could calculate the upper bound of market size group by group (characterized in Methodology):

 400*71.4%*70%*1.5%*1/1+400*71.4%*30%*1%*1/1+400*19.1%*70%*1.5%*0.5/1+400*19.1%*30%*1.0%*0.5/1+400*9.5%*70%*1.5%*0.5/1+400*9.5%*30%*1.0%*0.5/1=4.63 billion RMB

The lower bound of market size:

400*71.4%*70%*1.0%*1/1+400*71.4%*30%*1%*1/1+400*19.1%*70%*1.0%*0.5/1+400*19.1%*30%*1.0%*0.5/1+400*9.5%*70%*1.0%*0.5/1+400*9.5%*30%*1.0%*0.5/1=3.43 billion RMB

Great potential in corporate training outsourcing in Shanghai

Given the statistics and market research data above, we reach the conclusion that the market size for corporate training in Shanghai for SOEs is roughly estimated within 3.43 ~ 4.63 billion RMB, which takes up on average 0.86% to 1.16% of the GDP of SOEs enterprises, equivalent to 0.17% to 0.23% of total GDP in Shanghai. Therefore, it is a large number using the demand analysis and methodology in this report. In other words, we can see great potential in corporate training outsourcing for Shanghai SOEs.

corporate training Shanghai

Chinese References

Market research China

State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government:

Sina Finance news:

Caixin Finance news:

Shanghai Statistics:

Dfdaily news:

Department of finance of Guangdong Province (it shows national policies, applicable to Shanghai’s)

Hotel market in China

Hotel market in China

Due to rapid growth and development, China is becoming a major center for tourism and business. As a result, there is an increasing demand for hotels and resorts, which offer high-standard service for tourists and businesses from different parts of the world. This led to rapid development of hotel market in China during the past decade.

Classification on hotel market in China

Hotels can be divided into two major categories: holiday’s resorts and business hotels. Beijing, Shanghai, Shenzhen and many other financial and industrial centers of China mostly offer hotels for business: such facilities as conference rooms and gym are necessary. In places such as Sanya, most of the hotels are resort-type, which offer swimming pool, all inclusive board and children facilities, which are more appropriate for tourist.

hotel market in China

International hotel chains are highly rated by Chinese consumers

There is a huge number of hotels, located on the territory of China including hotel chains. Some brands as Shangri-la, Shanghai Jinjiang International Hotels, InterContinental Hotels, Guangdong (International) Hotel Management Holdings, and Jinling Hotel Corporation are market leaders. However, as long as the market is highly saturated and comprises a lot of brands-big and small-top 4 hotels currently account for only 4.3% of market share, according to market researches in China. Moreover, “love for luxury” among Chinese consumers plays a leading role in choosing a hotel. Sheraton, Hilton and Marriott are highly rated by Chinese consumers even though the hotels are not explicit market leaders. Such hotels as InterContinental and Shangri-la are also loved by Chinese consumers although these are evident leaders on hotel market in China.

What Chinese customers like about international hotel brands?

Chinese hotel chains constitute for the majority of market leaders of the industry except for InterContinental, which is originally a British company. However, international hotels are also extremely popular among the Chinese due to their “name” and high-quality hospitality standards. It is broadly accepted, that European brands are associated with high-standard service among the Chinese. It is a crucial fact on Hotel market in China.

hotel industry in China

Industry’s growth is promising

According to market research in China, the industry has been growing 9% annually for the past few years. Construction and urbanisation, which have accelerated in the country for the past decade, create more opportunities for hotel industry. Sanya, which is usually referred to as “Maldives of China”, has been recently developing and attracting more investment in the areas of hotel construction and tourism development. As a result, there are currently over 100 hotels on the island and an increasing number of tourists every year.

2010 was the most successful financial year for the industry since 2008 economic crisis. Since then, hotel market in China has been experiencing a slowdown: annual number of tourists has been reducing by 2% annually since 2011. However, massive construction and urbanisation are expected to stabilise the industry’s growth in the future.

market research China


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Market research China

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