In a mid-summer issue of Shukan Economist, a Japanese business weekly, Japan-made products on the Chinese Taobao e-commerce rankings were listed like a snapshot, giving revealing insights of Chinese consumer desires, suspicions and behavior patterns.
As the powerful Chinese economy created disposable income for larger numbers of Chinese consumers, interest in imported goods purchased online skyrocketed, especially Japanese products known for quality and workmanship. On e-commerce sites like Taobao, part of the giant Alibaba Internet B2B/B2C empire, “top ten” products are usually cheap and small in size, so the consumer benefits are easy to understand.
The top-ranked e-commerce Japanese-made product–selling like hotcakes, as Americans say–was the unexpected Mitsubishi Corp. “Uni”-branded color ball-pen set for 3.1 yuan/US$.50. I tried a Uni pen in a Tokyo stationary shop and found it a smooth writing instrument: a Tungsten Carbide ball, strong plastic and rubber grip, nice bright colors. The pen is refillable with various waterproof, quick-drying ink. Perhaps Chinese students and businessmen use this pen for university exams and contract signings from Harbin to Kunming. Why is this Japanese pen continuing to sell without Chinese copycat products? One reason is that the materials and manufacturing are quite advanced for such a cheaply priced product, and a Chinese firm would have to invest much in product design and sourcing the right materials for manufacturing, and end up losing much time and funds.
Recalling the terrible fall 2008 mass poisoning incident when six Chinese babies died and hundreds of thousands of children were sickened by melamine-tainted milk, it is no surprise that Japanese-made infant powdered milk is among the top-selling products. Some Chinese believe that direct Internet sales and home deliveries of powdered milk products would ensure that the contents had not been altered. The top Japanese powdered milk product is the Meiji “Smile” brand at 218 yuan/$32–which is a steep price given that local brands are much less expensive, but emotion sways buying decisions, since even the thought of infant kidney failure due to contaminated milk must give nightmares to Chinese parents.
Also in the “baby” category are best-selling Japanese diapers, including the Kao “Merry” or Unicharm “Moony” brands (128 yuan/US$19)–again, priced higher compared to local brands. Chinese parents believe that the diapers contain no harmful chemicals that cause allergies or rash, and the materials are top-notch, preventing spillage. Having gone through tons of diapers raising our baby (and instructed by my wife on which brands to buy), I can join Chinese consumer preference on this category –our “Little Empress” is worth the extra money.
Marketed by different Japanese manufacturers, there are several anti-insect repellent stick-on patches (20 yuan/US$3) listed as best-sellers among Chinese. I have used anti-mosquito repellent sprays, but I never heard of an anti-insect patch, presumably on exposed skin. Chinese consumers may have had collective successful experiences with the product near canals or swampy areas or there are suspicions with ingredients in anti-bug spray cans (which are often inhaled by children). It may be useful to investigate how Chinese consumers hear and learn about such an unusual product, and how “viral campaigns” are conducted among product evangelists in cyberspace or among friends and neighbors.
Due to the decline of smoking in Japan (two decades ago all my Japanese uncles and cousins were chain-smokers, and now only one cousin, heavily stressed, smokes), there is a fresh market in China for the Tokai Tobacco Filter “bio-pipe” at an affordable 4 yuan/US$.60 (if you multiple this by 600 million Chinese smokers, you are talking real money, to paraphrase the late Senator Everett Dirksen statement about the U.S. government budget). Due to the absence of conclusive health studies for this “wonder filter-pipe,” I hope that the Chinese review their smoking habits, or else foresee the Chinese economy being dragged down by medical costs in the future.
In the personal care category is the top-ranked Lion brand “herbal cleansing action” shampoo. The Lion shampoo supposedly thickens hair during washing, and is especially sought-after by the follicle-challenged segment. As Chinese buying power increases, vanity product spending also rises. The “hair-related” market in Japan resists economic downturns; this industry is growing (figuratively and literally) with a wide range of shampoos, toupees, hair transplants and treatments, and will find a loyal, enthusiastic following throughout mainland China.
Finally, a word to the wise: according to the Japanese Ministry for Economy, Trade and Industry, counterfeit Japanese goods are proliferating on Chinese online shopping sites. In a recent “sting” operation the Ministry bought 10 Japanese products on several Chinese online sites and discovered that on one site, all the “Japanese” cosmetics sold were fakes, while on another site, over half of Japanese-brand watches and majority of clothes were counterfeits. Even the Shukan Economist pointed out that although many Japanese goods become best sellers, in a short period copycat low-quality products appear on Chinese e-commerce sites and eventually kill interest in the original real product among Chinese consumers. Ultimately, Chinese consumers deserve to receive and use the “real” product–of any country of origin–for their hard-earned yuan.