Chinese advice market offers prospects for Australians
By Zoe Fielding
China may have long been thought of as a key export market for Australian commodities and agricultural goods, but it could also offer strong prospects for financial planners.
A new study has revealed that 63.6 per cent of consumers in China sought advice before making large financial decisions.
The study, conducted by research consultancy Dragondata, gauged the behaviours of 4,010 Chinese consumers living in 34 provinces.
Results showed 21 per cent of respondents thought planners were best positioned to advise them on their finances, however, this compared with 26 per cent who preferred to trust newspapers and magazines, and just under 20 per cent who asked their friends and families.
“There is an opportunity, but it looks like there’s an element of education needed,” Dragondata head of market intelligence Craig Phillips said.
Phillips noted Chinese interpretations of what “financial advice” meant may differ from Australia’s.
“They might think of financial advice in a bank as being about savings accounts for example, as opposed to how we interpret financial advice,” he said.
In general, Chinese consumers thought of Australians as trustworthy business partners, ranking us third behind the USA and Canada.
However, the sheer size of China’s population meant it should not be approached as one cohesive market, Phillips warned.
“While this [research] is broadly saying that Chinese people are open to seeking financial advice before making decisions, any attempts by groups to penetrate the market would have to research specific provinces,” he said.
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