McKinsey recently released some data that can help us predict a few trends for the consumer market in China for the near-future.

To fully grasp China’s future direction, it is essential to understand its new middle class. A huge wave of increasingly affluent consumers will constitute China’s urban majority in less than a decade. The rapid emergence of this prosperous, digitally savvy, individualistic, and sophisticated class of consumers is creating opportunities and challenges for the companies that serve them.

Here are the three largest movements that should impact the way brands communicate with the consumer market in China:

1. The new middle class is exploding and has more disposable income than ever before. As such, this unlocks a new market for consumer goods. Make your brand part of their routine (convenient, fast, easy) and you will have a loyal customer for life.

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2. Urbanisation is influencing changing the DNA of cities. First generation migrants mean new consumers in cities who previously had limited access to brands. This gives many western brands the chance to make a first impression on an entirely untapped market– make it an experience worth remembering.

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3. e-tail is still the number one purchasing point for Chinese consumers, and growing. With sites such as taobao and 360.com reaching all corners of China and offering speedy delivery (that afternoon for morning purchases) online shopping is still the most effective way to get goods to the consumer.

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And as always, scale is the key. the e-tail numbers in China make Black Friday in the US look like a garage sale:

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See the full report here.

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