Chinese consumer report

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La consultora Roland Berger Strategy Consultants ha publicado su informe anual Chinese consumer report 2012 que analiza los hábitos de consumo en China. El informe se ha elaborado en base a una encuesta realizada a 10.000 consumidores en 20 ciudades, para conocer sus hábitos de consumo en prendas de vestir, productos de cuidado de la piel, teléfonos móviles, automóviles y bienes de lujo

Transcript of Chinese consumer report


    In depth knowledge for decision makers


  • 2Foreword

    Significance of Roland Berger's consumer survey

    Developing trends in China's consumer market

    Tackling the challenges facing companies

  • 3Foreword

    China, after ratcheting up three decades of spectacular growth, is now the second-largest economy in the world. Its growth over the past 30 years is unprecedented in the modern era. The emergence of this new economic superpower brings with it a new set of Chinese consumers and global enterprises are seeking to satisfy the demands of this burgeoning and increasingly sophisticated market.

    Roland Berger Strategy Consultants, which is the largest strategy consultancy of European origin, was among the earliest international strategy consultancy firms to establish a presence in China. Since 2009 Roland Berger has closely observed the buying habits and trends of Chinese consumers and has published a comprehensive and systematic study annually since then. The survey this year covers 20 Chinese cities, ranging from first-tier through to fourth-tier cities. Some 10,000 consumers with different spending levels were surveyed to monitor their consumer habits in clothing, skin care products, mobile phones, automobiles and luxury goods. As such, the survey provides an up-to-date synopsis for companies that focus on meeting the specific needs of Chinese consumers.

    We observed four significant trends relevant to the Chinese consumer market this year. First, consumers born in the 1980s and 1990s are a formidable consumer force, shaking up the retail sector. This generation of consumers is not captive to certain brands. On the contrary, they are easily influenced by advertising and constitute a lucrative market segment for companies that develop innovative products. Second, the purchasing behavior of consumers differs significantly depending on where they live, or more specifically, how big the city in which they live is. Brand loyalty continues to increase for consumers in first-tier and second-tier cities, so too products that answer emotional demands. Third, the monthly household income of 7,000 yuan has become a watershed of purchasing activity. Those with a higher income are more discerning: they gather more information about the products they wish to purchase and pay greater attention to spending on products that satisfy their emotional needs. Fourth, online shopping is witnessing a rapid expansion. However, growth is not uniform across the different consumer groups.

    These trends provide both tantalizing opportunities and challenges for consumer goods companies. Based on its deep understanding of this market, Roland Berger recommends companies to develop a three-pronged marketing strategy. First, companies should position their brands in line with consumers' values. Second, the marketing focus and approach adopted by companies should be defined based on the target group's purchasing behavior and it should exploit new marketing strategies such as smart phone and internet marketing. Third, given the fast growing e-commerce environment, companies must consider offering consumers online shopping opportunities and select the right e-commerce business development strategy.

    For almost thirty years, it has been Roland Bergers honor to experience the rapid growth occurring in China as a result of the country's economic reform and opening up to the outside world. Looking to the future, Roland Berger will continue to offer its full commitment to enterprises interested in participating in China's development, providing professional, innovative and localized consulting services for Chinese and international companies.

    We look forward to the prospect of making that journey with you.

    Member of Global Executive Committee

    President, Asia

    Roland Berger Strategy Consultants

  • 4Over the past two years, the Chinese consumer goods market has experienced a series of major changes:

    > A major consumer group has emerged from the generation of Chinese born in the 1980s and 1990s who have now reached their twenties and thirties; the Chinese economy has performed outstandingly during the Government's 11th Five-Year Plan; third- and fourth-tier cities have seen a rapid development, with spending power in these cities soaring.

    > A large number of advanced foreign brands, technologies and products have entered the Chinese market and are hugely influencing high-income groups in developed areas. The difference in spending attitudes seen in high- and low-income groups is accelerating as a result.

    > E-commerce has become a key domain supported by the Chinese government; online shopping has developed into an emerging shopping channel, growing exponentially at a CAGR of 100% over the past three years.

    These changes provide new opportunities for Chinese and international brands, distributors and retailers alike. To make the most out of these developments, however, market participants need to recognize and anticipate the behavior of consumers in relevant segments. This will be key to successfully introducing and deploying the most appropriate marketing concepts.

    Roland Berger Strategy Consultants has conducted a market survey of Chinese consumers each year since 2009. The in-depth surveys examine purchasing values, level




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  • 5of activity and purchasing behavior through quantitative and qualitative research. The annual Roland Berger Consumer Report has become a useful reference guide for domestic as well as foreign consumer goods companies that compete in the Chinese market.

    The survey's quantitative research is based on a combined telephone and fixed-location approach, covering a total of 10,000 samples in 20 cities, spanning from first-tier to fourth-tier. (See B.1)

    Five product categories comprising clothing, skin care products, luxury goods, mobile phones and automobiles were studied. For each category, a fair balance was made in terms of product attributes and coverage of product values.

    To achieve a balance of product attributes, the five categories included both those with stylish attributes such as clothing, skin care products and luxury goods as well as those with technological attributes such as mobile phones and automobiles.

    To ensure a balanced coverage of product values, the five categories covered a wide range of product values, including low-value products such as clothing and high-value ones such as automobiles and luxury goods.

    Our survey respondents were categorized in the following dimensions: age, city tier, monthly household income, shopping channel, etc. Since we also examined the values and activity of consumers for each of these dimensions we can provide enterprises operating in China with additional meaningful insights.

    1). The city tiers are categorized according to the city classification methodology and model developed by Roland Berger.

    The quantitative research of Roland Berger

    Consumer activity level study

    Survey methodology > Telephone survey

    Consumers behavior study

    > Fixed-location survey

    > All product category representative consumers

    > Consumers who bought products from representative product categories over the past six months

    > 3076 samples > 6937 samples

    20 cities: > First-tier cities: Beijing, Shanghai, Guangzhou and Shenzhen> Second-tier cities: Chengdu, Foshan, Hangzhou, Qingdao, Xiamen,

    Shenyang, Shijiazhuang and Changsha> Third-tier cities: Jiujiang, Luoyang, Lanzhou, Zhuzhou and Nanning> Fourth-tier cities: Jinjiang, Maanshan and Meizhou

    Target group

    Sample size

    Cities covered

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    ket The results of Roland Berger's study show a

    Chinese consumer market with four prominent features, namely: the huge potential from young consumers; increasing purchasing activity from consumers in low-tier cities; the substantially improved spending power of high-income consumers; and a rapid uptake in online shopping. Among these features, the following ten observations deserve particular attention:

    > Consumers aged between 25 and 34 years are the most active this was notable in all observed categories. Like their peers in other parts of the world, consumers between 17 and 24 years in age are also active buyers of clothing, skin care products and mobile phones. Consumers in this age bracket were born and grew up in the 1980s and 1990s, a time of unprecedented prosperity in modern-day China.

    > Consumers aged between 17 and 24 years have not yet developed their own brand awareness and display relatively impulsive purchasing behavior. Compared with older consumers, they have a lower level of product preference, pay more attention to the visual appearance of products and are easily and significantly swayed by distribution channels.

    > Consumers from second-tier cities deserve extra attention, as they are active in the purchase of luxury goods and automobiles. Consumers from low-tier cities are more active in the purchase of daily necessities such as clothing, skin care products and mobile phones, but remain cautious about buying big-ticket items.

    > Compared with first-tier and second-tier cities, consumers from low-tier cities have a lower level of product preference. On the one hand, this is certainly due to the limited type of local retail formats on offer. On the other hand, local consumers do not have fixed brand awareness and are more willing to pay