The Halo Effect of European Brands from the Perspective of Chinese Consumers

Abstract

In China, imported brands used to dominate the market in many industries for decades. Among these brands, products from Europe are perceived as a representative of reliable quality and even a symbol of high social status. However, the turning point came approximately ten years ago. After 2020, Chinese domestic brands grow even faster. The perception of Chinese consumers also changes rapidly.

This study aims to analyze the halo effect of European brands from the viewpoint of Chinese consumers. Although a lot of products from Europe are still popular in China and have high sales, European brands face more challenges in recent years. The challenges could come from the rise of Chinese brands, the changes of Chinese consumers’ mindset and so on.

This research will focus on skincare products. Quantitative data collection will be applied through an online survey. The participants of the survey are Chinese consumers. 168 responses were finally collected and 100 of them were eligible for the research. The survey results suggested that European brands still enjoy a halo effect in China. Most Chinese consumers have a good impression on European brands and are willing to pay a premium for products from Europe. It is also noticeable that consumers become more sensible and cautious. They care more about the product itself and cost-effectiveness.

The results of the research and relevant advice could be considered by European companies that have the ambition to enter Chinese market. They might know more about how Chinese consumers think about European brands in 2025. They might also get some inspiration about how to take advantage of the positive perception as a European brand.