China's Consumers Lack Brand Loyalty, Study Reveals

Leading consumer brands are faced with low customer loyalty in China, according to a joint study by research firms Bain & Company and Kantar Worldpanel. Results of the study, which covered 40,000 households in mainland China, revealed a high churn rate among consumers, with the top 5 brands in each market segment seeing between 40–80 percent of new customers. Hair care brand Head & Shoulders, for example, saw its customer base expand 3 percent from 2011 to 2012; however, data revealed 45 percent of 2011 buyers did not return in 2012. Market penetration drives repurchase rates and market share, the study revealed.