Literally: More Savvy– as in there are many more of them and they are increasingly savvy about your brand and products. So who is this new Chinese consumer? And what are they buying? And  most importantly, why?

The Chinese consumer is looking for many things from a brand these days and they are making them work for every purchase. Research shows that the brand loyalty of Chinese consumers is relatively low in comparison to their western counterparts, but this is expected to change as brands adapt to the local markets. A Chinese consumer is looking for an emotion connection. A brand that creates a community and social experience connected to others. For example, it is estimated that consumers are 83% more loyal to “green” brands as it builds a common goal among all consumers. Heritage and individuality are also strong selling points. 10 of China’s 50 most valuable brands did not exists 15 years ago, so having an established history is unique. Respect is also being demand of brands engaging the Chinese market. While consumers enjoy offers specifically for the China region, they are well aware of what a brand is dong outside of China and if the Chinese message does not match the global message, consumers will notice.

Here are a few top trends that can help to identify where the Chinese market is headed…

First, markets are growing:

  • There is a growing mid-range consumption market. Discretionary spending is increasing year on year as wages increase and a saving culture becomes more spending driven.
  • The tier 4, 5, 6 cities are beginning to consume more than ever before, and with online commerce they have more access to products and services.
  • New fast growing industries include a thriving art market, an explosive smart phone market, the second hand luxury market and the e-commerce market.
  • New communication tools are now being tapped. Social media and extended networking circles are continuously becoming more influential.
Delivering of online products as reached the countryside and opened an entirely new market for many brands.

Delivery of products purchased online has reached the countryside and opened an entirely new market for many brands.

So what is driving these purchasing decisions?:

  • Convenience. China moves at a staggering pace, and the market wants to consume on that level. Easy access, delivery, online payment, mobile shopping, ready to go packaging all play into making products more accessible for quick consuming in the market.
  • Product Design. Western products that are finding success in China are those that are part of the routine. Getting a Starbucks on the way to work, using Kiehl’s lotion every night, driving a BMW: these routines are racking up the cash register. And the brands behind them have put a lot of research and tailoring to make their products a perfect fit for the daily Chinese consumer’s lifestyle.
  • Customisation. In a land of plenty, it is tricky to stand out. But consumers are shunning  the mass buying trends and discovering brands that allow them to stamp their own individuality along with the brand’s. This is one of the faster growing trends in China.
  • Special offers. Limited Edition products or special services to show a consumer that you appreciate them and are giving attention to the Chinese market goes a long way. Products that are gifted to loyal spenders are often coveted, as they cannot be bought, but must be earned.
absolut72

Limited Edition products made exclusively for the Chinese market.

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