A leading European consumer products company sought to understand how Chinese brands would fare in a new European market, where they held a significantly stronger initial position than Chinese competitors but remained mindful of the rising influence and potential of these emerging brands. Their brand had a well-established heritage, and they wanted to assess whether this gave them an advantage in the eyes of consumers. However, our research uncovered more than they had anticipated—providing critical insights for both short-term strategy and long-term positioning.

A Quantitative Study Comparing a German Car Brand and Chinese Competitors.

A European consumer products company, while holding a strong reputation, sought the help of Lomi Agency to uncover areas of strength, weakness, and overall user satisfaction across multiple markets. The challenge lay not only in identifying discrepancies but also in understanding cultural nuances and user expectations in each region.

The company needed to:

• Evaluate how Chinese brands were perceived in this new market.
• Understand if their established reputation provided a competitive advantage.
• Identify potential risks and opportunities associated with shifting consumer preferences.

The key question was: Would brand heritage be a strength or a liability in a market where customers demanded both trust and innovation?

Lomi Agency leveraged its deep experience in both Chinese and European markets to craft a research strategy that combined multiple methodologies. Rather than relying on a single approach, the team used a broad net—ensuring they were prepared to capture unexpected insights.

Our research revealed a surprising openness to Chinese brands, challenging assumptions about consumer loyalty. While established brands benefited from strong trust and reliability, consumers prioritized innovation and perceived quality. This shift presented both risks and opportunities, outlining a clear path for the European brand to strengthen its market position.

Brand heritage was both an advantage and a challenge:

• Brand Trust: Consumers valued the brand’s reputation for quality, offering reassurance in a competitive market
• Desire for Innovation: Legacy alone was not enough—consumers expected fresh, forward-thinking offerings.
• Openness to New Entrants: Consumers were willing to explore Chinese brands, provided they met strict quality standards.

Beyond the original research scope, the study uncovered deeper market drivers and consumer behaviors, informing both immediate strategies and long-term planning.

Armed with these insights, the client was able to:

• Refine its positioning strategy to emphasize both legacy trust and innovation.
• Develop tailored messaging that addressed consumer concerns while maintaining brand equity.
• Adjust product offerings to align with shifting expectations in the market.

Ultimately, the success of this project was driven by the approach: casting a wide net and being prepared to catch unexpected insights. By blending qualitative depth with quantitative validation, we helped our client make informed, strategic decisions that will shape their success in an evolving market.

This study reinforced several key lessons for companies operating in competitive and evolving markets:

• Heritage is valuable, but not enough – While brand trust remains an advantage, consumers expect continuous innovation.
• Openness to new players is increasing – Chinese brands are no longer seen as risky alternatives but as viable competitors, provided they meet quality standards.
• Market research must be adaptable – The most valuable insights often come from unexpected findings, reinforcing the need for a broad, exploratory research approach.
• Cultural context matters – Understanding how different regions interpret brand value and innovation is critical for refining market strategies.