China’s Confident Consumers
“The Chinese have taken to consumerism with ease, embracing thousands of new products, services, and brands. But the flipside is that the Chinese market changes at a speed capable of leaving all but the nimblest of companies breathless, as McKinsey’s 2011 survey of Chinese consumers highlights.1 Three findings stood out. Even in the face of rising inflation, Chinese consumers are more confident this year than in 2010 about their financial prospects. Among urban consumers, the number of first-time buyers—a group that has been a major driver of category growth in China—is declining. Finally, although brand awareness is rising, we see little sign that brand loyalty is following suit. In fact, more and more consumers choose among a growing number of favorite brands.”
The preceding quote is from the latest “DFS Learning e-Blast” article, “China’s Confident Consumers”, by Yuval Atsmon and Max Magni.
In this November 2011 article from McKinsey Quarterly, the authors discuss the recently published 2011 Annual Chinese Consumer Survey by McKinsey Insights China.
At a time when our PRC business is exploding in virtually all our retail locations, it is important for our leaders to understand the underlying factors influencing Chinese consumer behaviors. By understanding the evolving Chinese consumer mindset we can make better decisions on how we serve this important client today and into the future.
More from the article:
“The survey shows the extent to which consumers value brands more than price or channel, largely because they believe that branded products are safer, of higher quality, and more reliable than nonbranded ones. But faith in brands still does not translate into brand loyalty. In fact, both the number of consumers who always choose from among a relatively small set of brands—whom we refer to as “repertoire loyalists”—and the number of brands in their repertoire continue to rise. The average Chinese consumer now chooses among three to five brands in any given category, compared with two to three brands two years ago. In some categories, such as apparel, where luxury brands have grown hugely popular, the contrast is sharper still.”
Read the short article to learn more! The full survey is available here as well.
Mike Osorio, your Dare to be Contagious™ strategist
What do you think? Please add your comments to join the discussion!
Thank you for visiting my blog. Please follow, subscribe using RSS, and/or comment on my postings.