findings from china vals - strategic business insights...

Findings from China VALS

Cheri Anderson, Ph.D Senior Consultant

Strategic Business Insights [email protected]

© 2015 by Strategic Business Insights. All rights reserved.

Session 5, Japan Day 2015

mailto:[email protected]




• China VALS is a society-wide segmentation tool.

• Clients use the tool for strategic marketing and diagnostic applications.

• In brief, for strategic marketing clients use the tool to identify the right

consumer target for strategic marketing initiatives and then use the segment

profile to guide decision-making about messaging, product design, portfolio

management and so forth.

• For diagnostic purposes, clients use the tool to see how ideas, products or

trends diffuse throughout the society (where these start, where these get

stuck and so forth).

• China VALS is unique in the world for its emphasis on identifying stable

motivations contrasts between people (why people do what they do).

• As clients become more familiar with the segments, China VALS becomes a

“lens” through which to see clearly market dynamics—who is doing what and

why.

• There is a short China VALS classification questionnaire for predicting

segment membership in future studies.

ABOUT CHINA VALS™

• China VALS:

• Provides psychological insights that are more useful than

demographics or attitudes alone

• Links future work with current work so that all findings build on one

another; no work is wasted

• Enables rapid analysis because people see differences in hours, not

weeks or longer. Basically, once you get to know the types you can get

a quick reading on the market.

• Ensures that all team members share the same language and

understanding

BENEFITS OF CHINA VALS™

• China VALS is designed based on large-scale survey questionnaire data

from n=3,300 respondents, ages 15 to 64.

• Interviews were conducted in the home and took about 45 minutes to

complete.

• The sample frame consisted of 62 areas which cover major geographic

regions and different tier cities (1 to 4) and villages.

• Households were identified by random selection of residential addresses

from maps. Individual respondents were randomly selected from the

qualifying people in the household.

• China VALS is projected to 516 million people. This figure is an estimate and

does not include rural poor (those making less than about $2.50 per day),

floating migrants and those living in dormitories.

• The response rate varied by area but was generally about 25%

METHODOLOGY

• How the Chinese see themselves and each other is in flux. Generally,

expectations about what one should become (or not become) or what one

should hope or wish for are not well understood.

• There is an arc of contrasting self-images, being pulled at the one end by

communist or institutional values and the other end by personal gain.

• Different groups of people adopt different positions along the arc. Even

groups that have an “anchor” in one position or the other may still have

aspects of their lifestyles that look like their confederates.

• There is no single image of status or tradition, because people can not make

a reading of the most important social ideals in a consistent way. For

instance, are official values instruments for, or obstacles to, self-

advancement?

• China VALS is unique compared to other VALS system around the world in

that there are two high-resource achievement-motivated groups. This is so,

precisely because of the competing images across the arc. Consequently the

primary Achiever group has multiple images for which to aspire. For instance,

they look in one mirror and what they see (out there) makes them look

conservative. They look in another mirror and what they see makes them

look trendy.

BACKGROUND

• China VALS features three primary motivations that most strongly contrast

people:

• Those motivated by tradition want to live according to the ideals of a

traditional context that has stood the test of time. They make choices based

on principles, not status. As a group they have a ‘corrective’ function, for

instance to right a wrong. Their energy is directed toward preserving and

conserving.

• Those motivated by achievement want personal gain or advantage. They

make choices based on power, position and prestige. As a group they have a

transaction function which means they use cultural values to further personal

ambitions, not strengthen the values. Their energy is directed toward setting

goals.

• Those motivated by self-expression do not want to be constrained by

tradition or achievement. As a group, they can function to loosen or change

social norms. They make choices based on novelty, excitement and self-

discovery.

PRIMARY MOTIVATION

ACCOMPLISHEDS

5% of China’s Market

Fast Takes

ARE

DEMOGRAPHICS

Median age 39

Men 59%

University graduate or more 36%

Married 86%

Work full-time 89%

MOTIVATION: ACHIEVEMENT

RESOURCES: HIGH

Savvy, More-Than-Competent,

Reliable

• Consume more global, national, and local news than other

groups do.

• Are most interested in finance and economics.

• Are strong admirers of politicians and entrepreneurs.

• Actively promote their physical health yet, are more likely than

other groups to drink beer and wine.

• Have conservative attitudes.

Accomplisheds seek a better life than the one they currently have.

Money is important to them. They want to make money and move

forward but do not wish to attract attention for doing so. They want

power but do not necessarily want to be in a visible position of power.

In their view, being visible can take away their flexibility. They prefer to

develop and strengthen their inner-life rather than their outer image.

• They value autonomy.

• Business and family

achievement go hand-in-hand.

• Get their status from being the

most knowledgeable.

PACESETTERS


ARE

DEMOGRAPHICS

Median age 28

Women 66%

University graduate or more 43%

Married 54%

Work full-time 83%

photo


RESOURCES: HIGH

Fast Takes

Pacesetters want to be recognized by peers and to be seen as

having a role or social position; they may even want fame. They

wish to be seen as someone who is much more than simply

competent for the task at hand. Soft assets, such as having good

times with people, being seen as fashionable, and having faith in

themselves, are important to them. They are looking for insights

about who they are and who they can become.

• Have smart ways to challenge

authority.

• Are me-focused.

• They want adventures.

• Get their status from being

trendy.

• Are the heaviest users of social networking.

• Are heavy consumers of material goods and experiences.

• Admire attorneys, sport players, and people with independent

occupations.

• Believe that it is most important for children to develop imagination.

• Appear to have a romanticized view of ancient Chinese values,

practices, and folklore.

Ambitious, Status-Seeking,

Future-Forward

PRESERVERS

6 % of China’s Market

Fast Takes

ARE

DEMOGRAPHICS

Median age 43

Men 68%

Polytechnic or more 35%

Married 91%

Work full-time 76%

MOTIVATION: TRADITION

RESOURCES: MEDIUM

Preservers are mostly urban dwellers. They provide a counter

balance to the wave of ambition, the pursuit of money, and desire

for power. For Preservers, success is having stability and peace

of mind in daily life. They believe children should learn hard-work

and to be right-minded. Although Preservers have a traditional

feel, this does not mean that they always want to support

preservation of the past.

• Money is not the best measure of

success.

• They participate in many

traditional Chinese arts.

• Others sere them as being down-

to-earth.

• Are heavy print media users; watch topical television such as

legal, health, news, folk landscape, theater, and arts

programs.

• Enjoy playing Chinese chess and old dominoes.

• They are above-average owners of financial products.

• Like famous people who are honest.

• Have a strong interest in their physical well-being.

Balanced, Home-Oriented

Conservative Professionals

SUSTAINERS


Fast Takes

ARE

DEMOGRAPHICS

Median age 49

Women 53%

Middle and high school 77%

Married 89%

Work full-time 52%

MOTIVATION: TRADITION

RESOURCES: LOW

Sustainers are loyal to a traditional way of life even though in

aspects of their daily life, they may look like other people who are

not traditional. They do not identify emotionally, and appear to be

unconcerned, with any social change. Sustainers would likely go

back to village life because it offers a well understood sense of

purpose. When asked, they may quietly offer social criticism.

• Have reverence for tradition.

• Are not interested in change.

• Are rank and file members of

society.

• They are above average for working in a factory.

• They are the most likely to cook and to visit the open market.

• They like famous people who exude honesty and “good word of

mouth.”

• They admire soldiers and school teachers.

• Are below average for having personal access to Internet.

• Are above average to have a practice to remember their

ancestors.

Quiet, Old-Fashioned,

Functional

ACHIEVERS


Fast Takes

ARE

DEMOGRAPHICS

Median age 38

Men 55%

High school or more 55%

Married 76%

Work full-time 70%


RESOURCES: MODERATE

• Want to have as many luxury

items as their friends have.

• Want to have fun .

• Are looking for the promise of

something to come.

• Work the edge of stability and

mobility.

• They worry a lot about personal spirits and fortunes.

• They worry about personal safety and employment problems.

• Are interested home improvement.

• They are above average for getting information about family

finance, faith, and spiritual matters.

• They are above average to receive services from politicians and

fortune tellers.

• They are above average in admiration of private owners.

• Are more likely than all other groups to shop at the jewelry market

on a frequent basis.

Achievers are the most aspirational of all people in China. They want to

keep up with upwardly-mobile China but feel insecure about how to do

so. They look to the world around them for cues and validation:

what to become, what to wish for, or what is my destiny. They

accommodate both traditional and trendy attitudes instead of aligning

with a single point of view.

Aspirational, Approval-Seeking,

Engaged

TRENDY ACHIEVERS (SUB-GROUP)


Fast Takes

ARE

DEMOGRAPHICS

Median age 30

Women 52%

Technical college or more 40%

Married 62%

Work full-time 73%


RESOURCES: MODERATE

• Want to have as many luxury

items as their friends have.

• Want to have fun .

• Are looking for the promise of

something to come.

• Work the edge of stability and

mobility.

• They are the most likely to want other people to know if they buy

something expensive.

• Are more likely than others to agree than a “fake brand is as good

as the real thing.”

• Are the most likely to have grown up in the outer city, not in a city

center or rural area.

• Are more likely than average to own a variety of high-tech goods

such as MP3 player, video game console, and desktop computer

• Are the most likely to personally own a motorcyle

Trendy Achievers share the same mindset as primary Achievers. They

are the most aspirational of all people in China. However, they have an

even greater desire to be seen as successful, worthy of admiration,

and high status than do other Achievers. This may be due to their belief

that their lives do not offer the same opportunities for advancement as

the lives of others.

Aspirational, Approval-Seeking,

Engaged

EXPERIENCERS


Fast Takes

ARE

DEMOGRAPHICS

Median age 21.5

Men 33%

Polytechnic or more 52%

Married 20%

Work full-time 51%

MOTIVATION: SELF-EXPRESSION

RESOURCES: HIGH

Experiencers seek personal advancement and look for

innovative ways to move ahead in a career or area of interest.

They are the most ready and open to experiment with Western

forms such as art or business. They believe that “developing

creativity” is the most important attribute for success.

• They are under-average news consumers and, in general, are

apolitical.

• They do not identify with conflicts between traditional and trendy

ways of living.

• Are heavy readers of books. Most can read English.

• Are engaged in wide range of social activities.

• They want to experience all that their world has to offer.

• Are more likely than average to be students.

• Have many things they want to

try and buy.

• Are savvy technology users.

• Are passionate about self-

expression.

Innovative, Experimental.

Interested

ADAPTERS/STRIVERS


Fast Takes

ARE

DEMOGRAPHICS

Median age 28

Women 61%

Technical/vocational or more 47%

Married 56%

Work full-time 61%

MOTIVATION: SELF-EXPRESSION

RESOURCES: LOW TO MODERATE

Adapters are similar to Experiencers but do not have the explicit drive

for personal advancement or exploration. While it is clear to them that

they will not have far-reaching influence in life, they would like to buy a

house and have children. Adapters follow trends and generally

participate in social life. Their lifestyle has a trendy feel.

• They participate in a mix of social, cultural and sports activities.

• They like famous people who are trendy and lively.

• Are less likely to say that being financially responsible is the most

important attribute for success

• Are the most likely to say that it is important to teach children

spirituality and faith.

• Are more likely than other groups to work in wholesale or retail

trades.

• Are more likely than average to take vacations.

• Are above average to take skills-building classes.

• Want to be respected.

• Their plan for the future shadows

Experiencers.

• Are rank and file members of

society.

Trend-Followers, Faithful,

Informal

PROVINCIALS


Fast Takes

ARE

DEMOGRAPHICS

Median age 43

Women 52%

Middle school or less 73%

Married 76%

Work full-time 41%

LAGGARD

RESOURCES: LOW

Most Provincials grew up, and continue to live, in rural village areas.

They are not media centric and have a relatively low information-

seeking profile. Provincials are more likely than others to say that

having children and being financially responsible are important

attributes for success.

• Are the most likely of all groups to say “children should be

encouraged to learn obedience.”

• Are the most likely to wear traditional Chinese clothes.

• Are the most likely to be construction workers and farmers.

• Are below average for access to the internet.

• Are more likely than others to worry about health and disease.

• Are more likely than others to worry about personal spirits and

feelings.

Rural, Uncomplicated,

Necessary Labor

• Are focused on basics.

• Fix their own items that need to

be repaired.

• Prefer traditional recreation.

THE CONDITIONS OF MY LIFE DO NOT OFFER ME

OPPORTUNITY FOR ADVANCEMENT: AGREE

Source: VALS™ Strategic Business Insights, 2013 China Survey

14% of Of the Chinese Market

105

73

74

75

87

44 56

154

198

The index for each group

shows how much more, or

how much less, likely they are

to agree “a lot” with this

statement in comparison with

the market norm (100%).

For example, Achievers are

54% more likely than the

market norm to agree that the

conditions of their life do not

offer opportunities for

advancement. Experiencers

are 25% less likely than the

market norm to agree that the

conditions of their life do not

offer opportunities for

advancement.

Q A2

IT’S IMPORTANT TO ME TO HAVE AS MANY LUXURY

THINS AS MY FRIENDS DO: AGREE


9.6% of Of the Chinese Market

71

95

40

111

66

86 104

175

209







For example, Trendy

Achievers are 109% more

likely than the market norm to

agree that it is important to

have as many luxury things as

their friends do. Sustainers are

60% less likely than the

market norm to agree that

having as many luxury goods

as their friends is important.

Q A59

HOW OFTEN DO YOU WATCH ECONOMY AND

INVESTMENT PROGRAMS: ONCE A WEEK OR MORE



76

223

93

76

66

294 125

82

37







For example, Pacesetters are

25% more likely than the

market norm watch economy

and investment programs once

a week or more. Adapters are

34% less likely than the

market norm to watch

economy and investment

programs once a week or

more.

Q 3P20

HOW OFTEN DO YOU USE MAKE-UP PRODUCTS

(NOT INCLUDING SKIN CARE): EVERY DAY



18

110

11

191

139

184 536

44

60








more than five times as likely

than the market norm to use

make-up products everyday.

Sustainers are 89% less likely

than the market norm to use

make-up products everyday.

**Note when make-up is

measured at “monthly or more”

than Trendy AC index at 143

Q13_P53

HOW OFTEN DO YOU USE SKIN-CARE PRODUCTS

(NOT INCLUDING MAKEUP): EVERY DAY



64

61

109

119

133

125 207

79

93








about twice as likely than the

market norm to use skin-care

products everyday. Provincials

are 36% less likely than the

market norm to use skin-care

products everyday.

**Note when skin care is

measured at monthly or more

than Trend AC index at 120

Q13_P54

HOW MUCH DO YOU WORRY ABOUT PERSONAL

LUCK? A LOT


13.5% of Of the Chinese Market

120

34

25

69

62

79 124

145

223

The index for each

group shows how

much more, or how

much less, likely they

are to agree “a lot”

with this statement in

comparison with the

market norm (100%).

For example,

Provincials are 20%

more likely than the

market norm to worry

about personal luck;

Preservers are 66%

less likely to worry

about personal luck

than the market

norm.

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