This week I´ve read an article at McKinsey Quarterly entitled “China´s confident consumers” written by Yuval Atsmon and Max Magni, principals at McKinsey Shanghai and Honk Kong respectlively. Their article is based on McKinsey´s report 2011 Annual Chinese Consumer Study. It focuses on three findings in the report:
1. Chinese consumer´s confidence rises. Chinese consumer´s confidence in their financial future rises compared to 2010 (58% expected their incomes to rise next year vs. 39% in 2010)
2. Chinese consumer…not that loyal. Although they place high value in brands as they guarantee quality, safety and reliability, that does not seem to translate into loyalty. The number of brands in their “repertoire” keeps rising.
3. Growth drivers: first-time buyers lose importance. First time buyers used to be the main growth driver ten years ago. Currently it is not the case for mature categories and developed areas but it is still an important driver for less mature categories, big ticket items or less developed geographical areas.
Read their full article here.
(3rd post based on an interview to Vladimir Djurovic, LabBrand owner/founder- Labrand provides market and consumer research, brand strategy and creative services)
Vladimir Djurovic’s company, LabBrand, does plenty of research in the Chinese market, so I asked him what his views were on recent market trends in China that entrepreneurs would find interesting. These were his exact words:
“China: Five trends to monitor on four vital axis for brands:
-On Culture and Behaviour:
TREND # 1: Growing need for professional training solutions for service industries like catering, hospitality, etc…. How come this is still not yet there in China? It is time to open schools/academies and train your people!
– On Communication and Design:
TREND # 2: Branded applications for Mobile platforms (Ipod/ Android) – it is going to surge in the coming months and huge opportunities exist for brands and also for developer/content providers
– On Product and Services:
TREND # 3: One hot topic for the next decade in China : Medicines/ Pharma industry
– On Market and Consumers:
TREND # 4: Rise of the elderly Chinese spending – I was yesterday checking the opening of a high end retirement home in the suburb of Shanghai ( yes I know this is super glamorous!!) and I believe this is just the beginning of a lasting trend.
TREND # 5: Watch for more Online shopping especially in the luxury or high end segment.”
What interesting trends have you identified out there?