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Tuesday, August 21, 2012

Coca-Cola ranks last in Chinese consumer satisfaction survey

Want China Times, Staff Reporter 2012-08-21

Commercials of young models having the time of their lives have not
helped Coca-Cola's image and reputation in China. (Photo/Xinhua)

Coca-Cola ranked last among 12 mainstream beverage brands in a Chinese satisfaction survey, reports Beijing Business Today.

According to the China Association for Quality's 2012 annual satisfaction survey, Chinese consumers gave the country's soft drinks an overall score of 72.4 out of 100, marking the first time in four years that satisfaction levels have increased.

Consumer satisfaction appeared to be influenced most by the brand's reputation and its perceived quality. Domestic beverage brands such as Nongfu Spring, Wong Lo Kat and Wahaha all achieved above average scores of 73 or more, while brands such as Coca-Cola, Huiyan and Robuts all performed below the survey average.

Coca-Cola, in particular, achieved the lowest overall score of 69.3, falling six spots since 2010. While the beverage continues occupy a sizable share of the market in China, repeated quality issues appear to have damaged the brand's reputation and image.

In April, regulators in northern China shut down Coca-Cola's Shanxi plant after it was discovered that some batches were made with water containing chlorine. The company was said to have angered its customers when it initially denied the allegations and later claimed that the products would not harm the health of its consumers.

In March, it was reported that Coca-Cola and Pepsi products contained 4-Methylimidazole, a chemical compound linked to tumors. Although Coca-Cola modified its manufacturing process to conform with new standards in California, the recipe was not changed for its European or Asian market, leading to "double standard" criticisms in China.

An industry analyst said China's beverage market has become increasingly competitive due to falling demand stemming from the global economic slowdown. Increased health consciousness also means traditionally popular beverages such as Coca-Cola are being replaced by consumers with mineral water, fruit juices and tea drinks, which have become the three most popular beverages in the country, the analyst said.


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