Understanding China's Health Segments and Opportunities
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This article explores the health segments identified in the Kantar Worldpanel report, their behaviours, and the implications for manufacturers and retailers looking to capitalize on this growing trend.
Understanding China's Health Segments
The Advanced Analytics team at Kantar Worldpanel used the responses to a health survey of 3,000 consumers to create a segmentation which revealed 5 distinct segments based on their attitude and actions towards a healthy lifestyle.
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In contrast, the Balanced Achievers represent mid-income families, often with teenage children, predominantly located in lower-tier cities across Western and Northern China. While generally in good health, their approach to wellness is more moderate, focusing on fundamental practices like hydration and balanced eating without the intensity of the Health Enthusiasts.
The Passive Maintainers, comprising lower-income young singles and couples or young family in Eastern China, present a different profile. They enjoy relatively good health but take minimal proactive steps to maintain it, reacting only when health issues arise and are generally prioritising other aspects of their lifestyle such as their career or raising children. Their passive stance suggests opportunities for education and accessible health solutions.
Meanwhile, the Striving Improvers, primarily higher-income families in urban centres, are notable for their active efforts to overcome health challenges. This group has the highest proportion of overweight individuals but demonstrates a strong willingness to adopt healthier habits, making them a key target for supportive products and services.
Finally, the Disengaged Avoiders, lower-income young consumers in Southern China, exhibit the poorest health outcomes, including a 9% obesity rate, which is the highest of the 5 segments. Their disengagement stems from financial constraints and limited awareness, highlighting the need for affordable and straightforward health interventions.
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Strategic Recommendations for Manufacturers & Retailers
To capitalize on China's health trend, manufacturers and retailers must adopt nuanced strategies that resonate with these diverse consumer segments.
Building trust and clarity is paramount. Given widespread scepticism, companies should prioritize transparent labelling and straightforward health messaging. Educational campaigns demystifying terms like "low sugar" or "high protein" could alleviate confusion, particularly among Striving Improvers and Disengaged Avoiders.
Affordability and accessibility are equally critical. Expanding budget-friendly healthy product lines, such as nutritious snacks or ready-to-eat meals, could engage price-sensitive segments. Strategic promotions, like bundled offerings or discounts, may further incentivise trial among these groups.
Enhancing product assortment to reflect regional preferences could also drive engagement. For instance, incorporating traditional herbal ingredients might appeal to Southern Chinese consumers, while convenient, healthy options would resonate with busy urbanites.
Digital platforms offer another avenue for connection. Collaborating with health apps to recommend products based on user goals or leveraging social commerce through KOLs can effectively demonstrate product benefits and foster trust.
For the lucrative Health Enthusiast segment, premiumization is key. High-quality organic foods, functional supplements, and curated subscription services align with their preferences and spending habits, offering opportunities for sustained engagement.
How Kantar Worldpanel Can Help Businesses Navigate China's Health Trend
For brands seeking to capitalize on China's health and wellness movement, Kantar Worldpanel offers specialized expertise to translate these consumer insights into actionable strategies.
Kantar Worldpanel's Advanced Analytics can help businesses understand how different health segments interact with specific product categories and brands. Their solutions enable companies to optimise marketing investments by precisely targeting health-conscious shoppers through tailored campaigns.
Moreover, Kantar Worldpanel's research capabilities allow brands to quantify the importance of health within their category, assessing whether they have the right product mix to compete in this growing space. By conducting deeper surveys with category-specific shoppers, they can identify the unique triggers and barriers affecting purchasing decisions for healthy products. This level of granular insight helps manufacturers refine product development, packaging, and messaging to better align with consumer expectations.
Ultimately, Kantar Worldpanel serves as a valuable partner for businesses looking to navigate China's complex health landscape. Their data-driven approach transforms consumer data into strategic recommendations, helping brands connect with the right segments, develop winning products, and ultimately drive growth in this increasingly important market.