Shanghai, January 20, 2009 -- As the global economic downturn starts making itself felt in the consumer sector, Western fast-food restaurants and the tourism industry are poised to suffer major losses. A survey of Chinese consumers indicates that they cut back spending on these and other luxury purchases as well as on high-risk investments.

This survey - conducted jointly by a leading market research company, Millward Brown, and a global data solutions provider, Lightspeed Research–interviewed numerous consumers across China. According to the data collected, 78% of Chinese customers have felt some impact from the financial crisis and middle-class consumers in the 19 to 45 age group are feeling the most pressure. Compared with other provinces, consumers in more industrial-based economies like Guangdong and Zhejiang have been hit particularly hard.

Accordingly, consumers plan to respond by cutting back on the inessentials. Among the "Top 10 Least Affected categories", household products, food and personal hygiene products comprise the top three. Consumers will try to keep maintain their standard of living by focusing on daily necessities. Interestingly, though, mobile phones were one category in which will be least affected.

In such economic environments, marketing becomes more difficult, but not impossible. Jason Spencer, the managing director of Millward Brown-ACSR's Shanghai office, says, "Differentiation one's brand from the competition still plays an essential role in securing a greater market share. First of all, marketers should impress upon the consumers' minds that their products are daily essential products that should be considered "needs" not "wants". Secondly, don't blindly slash prices for promotions. Control the prices and keep them at optimal levels by introducing bulk "value pack" or smaller packages." Additionally, Spencer advices companies to continue communicating your brand's key messages or it will greatly damage your brand in the long term.

David Zhao, managing director of leading communication consulting firm Hill & Knowlton's Shanghai office, believes that communication is essential for companies and their brands. Creativity is another key component in differentiating yourself from the competition during an economic crisis. The most innovative and ultimately successful strategies are often inspired by adversity. Bold companies that are unafraid to try something new are those most likely to become industry leaders after the recession.