As a result, many operators in this channel tend to build large shopping complexes with hypermarkets as their anchors and invite clothing retailers, restaurants, and entertainment operators to create a small shopping mall.
For example, media reports in March revealed that clenbuterol, a drug that accelerates growth, was found in pork from the Shuanghui Group, a local leading pork manufacturer. Toys The younger generation of parents is more willing than older generations to pay for toys.
Analyses reckon that China, which leapt into second place in the global marketplace for technology, media and telecom inshould take the lead bysupplanting the United States by a wide margin. They can also be impulse buyers.
Consumers that cannot afford a higher-quality gift will buy the product with the nicest packaging within their price range. Cultural drivers behind customer loyalty But despite this preference for trusted foreign products, simply applying western models directly to the Chinese context will not reap rewards, in most cases.
Though they will consume healthcare and entertainment products, their children will likely buy these products for them. For example, most Chinese men do not wear cologne and most Chinese buy shampoo without conditioner. They can also be impulse buyers.
These consumers pursue individualism and often use the Internet to follow global trends. Retailers limit the amount of those products consumers may buy at a time to encourage shoppers to visit the stores more frequently. The current Chinese consumer population can be separated into several groups with distinguishing characteristics.
Why does this matter. Consumers are becoming more and more picky and have higher expectations. Family dissatisfaction is mounting over the amount they are able to set aside each year. Consumers will often pay a premium for foreign brands to ensure quality, particularly for important items such as infant formula.
Many Chinese consumers now prefer wine because it is less potent than spirits, less bitter than beer, and promoted as a healthy drink. It is quite possible that workers who have lived through this wrenching transition may never have the confidence to reduce precautionary saving.
Wealthier Chinese cities are saturated with supermarkets, but consumers in smaller towns are often too poor to support a profitable supermarket chain. Traditional Chinese snacks, such as roasted sunflower seeds and dried sweet potatoes, are generally made by small local factories.
Convenience foods The young generation spends significantly less time cooking than their parents and instead turns to restaurants and convenience foods, such as microwave meals and instant noodles. Headquartered in Silicon Valley—with offices in Japan, the United Kingdom, and New Jersey—we have a global reach and work across a wide range of government and business sectors, including electronics, health care, energy, and financial services.
If a foreign brand is priced lower than a local one, shoppers may suspect that it has defects. Demand for quality to skyrocket Chinese consumers demonstrate different shopping patterns depending on their wealth, age, and location.
In terms of general categories, the top three consumer goods groups that people purchase are food and beverage, clothing and electronic products. This group is characterized by having grown up in a more open environment and being well-educated.
Today, China has a wide range of retail formats, from hypermarkets and shopping malls to wet markets and online stores. Penetration of major household products has increased dramatically over the past decade. Choosing the right format can be critical to business success.
On one hand, Chinese shoppers believe the higher the price, the better the quality or the higher the status.
Chinese consumers are changing. Empowered by rising disposable incomes, consumers have become increasingly savvy: they are expecting more in terms. With the increasing consumption and purchasing power of Chinese consumers, understanding their preferences and mindsets is the key to the China market.
With the increasing consumption and purchasing power of Chinese consumers, understanding their preferences and mindsets is the key to the China market. Book A Demo. This article is an edited excerpt from McKinsey’s China consumer report, The Modernization of the Chinese Consumer (PDF–KB).
About the author(s) Daniel Zipser and Fang Gong are principals in McKinsey’s Shanghai office, and Yougang Chen is a principal in the Hong Kong office.
The emergence of the Chinese consumer is likely to draw added impetus in the years immediately ahead. Chinese policymakers for their part, are moving to shift the mix of economic growth from exports and investment to private consumption.
The Chinese Consumer’s Online Journey from Discovery to Purchase. The New Retail: Lessons from China for the West. June 21, By Chris Biggs, Amee Chande, Liyan Chen, Erica Matthews, Pierre Mercier, Angela Wang, and Linda Zou.
(See “Understanding Chinese Consumers.”). Understanding Chinese Consumers with VALS™ November Author: David Sleeth-Keppler Subscribe to Insights in Brief to be notified about new Featured Content as it becomes available!Understanding chinese consumers