With the largest population in the world China appears to be the ideal investment market. To be able to obtain a share in this market Roland Berger Strategy Consultants annually investigate the Chinese consumer. In addition to brand awareness the Chinese consumer has discovered online shopping completely. Also the internet is used more and more intensively to view and judge products. Companies should become part of this trend, according to the strategic consultancy.
Also from Roland Berger: "What does a Chinese want?"
"To approach the Chinese market as a homogeneous mass market is past" Alexander Belderok, partner at Roland Berger Netherlands says. Last year it already became apparent, that the Chinese consumer became more and more interested in an individual approach. This trend seems to continue. Consumers are becoming more divers because of the difference in values all the time.
The younger generation and the people in the middle classes are often looking for brands, which are associated with pleasure and pressure when looking for certain consumer goods. At some stage price was a consideration whether to buy something or not. Now this is only one of the factors next to brand name, quality and personal style.
100% per annum
The number of internet users in China has experienced an explosive growth during the past decade. In 2009 there were 384 million users, whilst there were only 23 million in 2000. Chinese consumers use online channels to buy products more and more all the time. The number of online shop transactions has grown annually with more than 100% during the last five years. Charles-Edouard Bou e, president and
managing partner of Roland Berger in China: "While e-commerce in China compared to online shopping in the United States (U.S.) is still low in absolute figures, the internet trade in China grows five time faster than in the U.S. In addition it is expected, that this strong growth will continue, mainly because the improvement of payment systems and safety will also improve in China."
Internet Word of Mouth
In addition to online purchases the number of conversations and discussions by users also grows fast. This is sometimes also called Internet Word of Mouth (IWOM) and especially in China this is very strong. About half (56,3%) of consumers mention, that the first time they heard of a brand was via IWOM and 58,7% decided to buy something through IWOM. "It is therefore important, that companies anticipate the Chinese interenet consumer. Especially after IWOM is involved, as this is in a position to either make or break you. By keeping note of the preferences of the users and to participate in the discussions in the correct manner, companies will be in a position to reach the consumer directly and continue to improve its brand image." Belderok explains.
About the research
About the research
Following the Chinese Consumer Report 2009 Roland Berger has again in 2010 during a period of two months interviewed 12,000 Chinese consumers from 64 cities in the age categories from 18 to 64 years. Consumers were asked about market perception and differentiation, consumer attitude, purchasing patterns and lifestyle. This method is in line with the methods of Roland Berger Profiler, developed internationally and used by Roland Berger Strategy Consultants. The research has been supplemented with data from CIC, Chinese markerleader in the area of Internet Word of Mouth research.
Source: Roland Berger
Source: Roland Berger
