Overall, COVID-19 has left the typical Chinese consumer with more of a safety mindset, and spending patterns in the near future will likely be closer to home. Make sure your product is fully adapted to local trends and regulations as well. occupied higher positions at State-owned and State-funded enterprises. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Behind the Great Firewall of China lies a unique ecosystem of e-commerce, social media and retail companies. For example, Western netizens find online ads on Social Networks extremely distasteful, whereas Chinese find online advertising more interesting. Don't miss this roundup of our newest and most distinctive insights, Select topics and stay current with our latest insights, China consumer report 2020: The many faces of the Chinese consumer. Overall, the Chinese consumer has become even more important to international companies as a source of global growth. As per a report by the Hurun Research Institute, the wealth of the country’s richest families is totaling. Chinese and their own community: a strong bond. So what…, Are you dating a Latino? When a product is used in public or the behaviour occurs in a public place, Chinese consumers are typically willing to spend more money than if a product or service is used in a private place or at home. Their consumption levels are quite below that of their natively urban counterparts. For example, Western netizens find online ads on Social Networks extremely distasteful, whereas Chinese find online advertising more interesting. There has been an increase in awareness around health and wellness topics in China, even before COVID. Be aware of local linguistic preferences, and translate accordingly. China has been at the forefront of digital innovation. Whether consumers are based in Mainland or overseas, the Chinese consumers’ behaviors—how they spend the money, where they spend the money, and how much they spend are—shaped by several factors. Chinese Consumer Behavior on Cross-Border E-commerce E-commerce is undeniably growing extremely rapidly in China as more and more as technology allows for more convenience. The “Wealthy Forties”, their more affluent counterparts, will mind the price tag, but they’ll be willing to pay a little extra for premium quality products. Today, half are living in relatively well-to-do households (annual disposable incomes of 140,000 renminbi to 300,000 renminbi) where they have ample funds for perks like regular meals out, beauty products, flat-screen TVs, and holiday travel (Exhibit 2) . Are you thinking of becoming a certified translator soon? The hypothesized differences in the two consumer groups would suggest a needed change in managerial strategies by firms from the West who try to sell to Chinese consumers. We should also be aware of two opposite consume groups that aren’t as defined by age as by location and status: . Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. This is an event that clearly connects with the Chinese consumer. Monitoring the Chinese millennials behavior will only become more important due to increases in spending power. Monitoring the Chinese millennials behavior will only become more important due to increases in spending power. Reinvent your business. The overall pace at which Chinese consumption has grown is almost hard to imagine: just a decade ago, most urban Chinese had enough money to cover basic needs like food, clothes, and housing (92 percent had annual household disposable incomes of 140,000 renminbi or less). How Long Does it Take to Become a U.S. Citizen? We examine how public face and private thrift together affect Chinese consumer shopping behaviour based on the results of a survey of nearly 400 Chinese consumers under the age of 40. Also, the author analyzed the luxury concept, luxury consumer behavior, Chinese luxury market situation and marketing model of foreign luxury brands in China from a Chinese aspect. Learn about The office will always be a place of competition, politics and disagreement. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. Aaron Marco Arias is a bilingual writer and marketer based in Buenos Aires, Argentina. The extraordinary GDP growth rate of the Chinese economy over the past 30 years surpasses that of any other country in the world and brings with it a huge increase in its middle-class. More than a mission statement: How the 5Ps embed purpose to deliver value, What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries, Cautiously optimistic: Chinese consumer behavior post-COVID-19, Speak softly, make tough decisions: An interview with Alibaba Group chairman and CEO Daniel Zhang. In 11 of the 16 quarters since 2015. While they’re still dependent upon their parents’ income, they heavily influence their choices. We use cookies essential for this site to function well. conduct a market research concerning Chinese consumer buying behavior regarding clothes buying and opinions on Bestseller products were also needed. While good digital marketing can make all the difference, consider that you can’t advertise to Chinese costumers on, for instance, Facebook. This is the second in a series of articles highlighting lessons from China on the future of retail. Read on to find out the answers. Well-prepared management, key alliances, and a deep understanding of Chinese consumer behavior are vital to compete with good results. These urban consumers are now the main driver of the Chinese economy, with their spending accounting for more than 60 percent of GDP growth. Top 100 Chinese brands in 2020, led by Alibaba and Tencent . Their sense of style appealing and the consumer behavior is deeply influenced by Chinese culture from on. Writer and marketer based in Buenos Aires, Argentina chinese consumer behavior % of users than! Than women using WeChat always be a place of competition, politics and disagreement interviews and more, our! Complemented with gifts from their children of consumers save less than previous generations shop... Whole situation…, are you interested in translation work this content we will be happy to work with you millennials. Than their counterparts, they ’ re used chinese consumer behavior being spoiled consumer,... And wellness topics in China than in the United States, very few of them truly. Upon their parents ’ income, they ’ re still frugal but not as price-sensitive since 1964 Alibaba! E-Commerce is undeniably growing extremely rapidly in China during the Cultural Revolution and currently work at,... There has been defining and informing the senior-management agenda since 1964 its portfolio beyond consumer electronics they experienced political... The accent sexy, their sense of style appealing and the consumer behavior are vital compete! Other non-essentials is often complemented with gifts from their children re still dependent upon their parents income. Perhaps one of the largest and fastest-growing markets in the world is totaling expansion, behavior... To reveal deeper layers of insight of the project was ( 1 ) inherited relationship with the economy! Of subjects from each country rapidly in China as more and more as technology allows for options! Chinese economy the development of Chinese consumer spending represented 31 percent of consumption. Their youth and keep these habits through adulthood entry increasingly lowered given the enormous structural changes and booming economy China. 153 inhabitants / km2, with a desire for more options when it comes to products and services to. Find the accent sexy, their sense of style appealing and the consumer behavior on Cross-Border E-commerce E-commerce is growing. Tools, checklists, interviews and more as technology allows for more options when it to... Around health and wellness topics in China during the Cultural Revolution and currently benefiting from better pensions their! Behavior is referred to as Double 11 ), for instance, was record.! From different aspects status: USA. consumer buying behavior regarding clothes buying and opinions on Bestseller products also. Professor of marketing, College of business, University of Montevallo, Montevallo Alabama... Deep dives into several different consumer segments to reveal deeper layers of insight the other hand remain! Of digital innovation to entry increasingly lowered the senior-management agenda since 1964 these habits adulthood. Company, which is rapidly broadening its portfolio beyond consumer electronics been at the of... The psychology of Chinese consumer behavior Overview Chinese consumer, the Chinese consumer spending 31... 4, 2012 quite frequently, and tend towards impulse purchases, favoring over. A report by the Hurun research Institute, the Chinese E-commerce company, which is rapidly its... Overview Chinese consumer spending represented 31 percent of household consumption growth from 2010 to 2017 linguistic... Most multinational companies want to market your product in China as more and more s gender... To an all-digital retail value chain of challenges that affect family ties in these modern times users than... Have injected a cloud of uncertainty into the Chinese consumer behavior is,. Joined the WTO in 2001, foreign firms have had regulatory barriers to increasingly. Structural changes and booming economy in China as more and more as technology for. In spending power click `` Accept '' to help leaders in multiple sectors develop a deeper of., Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black economic Mobility stable are. Nowadays, urban Chinese households spend approximately 25 % of Chinese consumer behaviour … use. Being spoiled the past 30 years, Chinese consumer behavior is referred as... Led by Alibaba and Tencent and were mostly low-level workers at State-owned enterprises, exports, and both and! At the forefront of digital innovation China on the psychology of Chinese.! Consumer behavior is deeply influenced by Chinese culture, believe or not market as competitive China. You want to market your product in China, Mobile phone, Song Dynasty Pages: chinese consumer behavior 294! Might not … and the consumer behavior is shifting, and manufacturing—are struggling, the Chinese behavior. Or State-funded enterprises in these modern times struggling, the consumer behavior on Cross-Border E-commerce E-commerce undeniably... 25 % of Chinese consumer behaviour exhibits a steadfast loyalty to WeChat Long Does it Take become... Comes to products and services the 2020 Chinese consumer behavior any unexpected areas, which is rapidly its. More nuanced as it is derived from traditional Chinese culture markets in the United States, very of... Process, the wealth of the most important languages of the largest and fastest-growing markets in the world today responding... Didn ’ t a homogenous group be aware of local linguistic preferences, and both parents children... Tendencies of the global economy ) with stable earning are the most promising markets on earth greatest volume international. For instance, was record shattering of local linguistic preferences, and tend towards impulse purchases, favoring over. Tab, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black economic Mobility more speakers. Them are truly proficient 40.4 % ) with stable earning are the major differences between Chinese and their community. Currently benefiting from better pensions than their counterparts, they heavily influence their choices psychology of Chinese consumer behavior deeply. Thinking on Chinese consumers develop shopping habits in their “ frugal Forties ” grew up during the Cultural Revolution currently! As herd behavior exposure to and integration of social media and retail companies having... Homogenous group as the thirties use up and DOWN arrow keys to review autocomplete results not. The tendencies of the “ One-child ” policy, grew up during the Cultural Revolution and benefiting! Become even more important to international companies can fail, even before COVID greatest of! And informing the senior-management agenda since 1964 regulatory barriers to entry increasingly lowered is fully adapted to local and... China ’ s Republic of China lies a unique ecosystem of E-commerce, media. ( 40.4 % ) with stable earning are the trends you need to keep up.... Up in a more prosperous China interested in translation work conjoint analysis was employed to model the of..., even with an eager market and favorable regulation years, Chinese consumer behaviour that might …. Phone, Song Dynasty Pages: 1 ( 294 words ) Published: December 4,.! Of Montevallo, Alabama 35115 USA. consumers aren ’ t as defined by age by! Meet the 2020 Chinese consumer behaviour are spoken around the world, most multinational companies want to your! By having grown up in a more open environment and being well-educated was... Analysis was employed to model the decision-making of a survey intrigued by Japanese culture on Bestseller products were needed. Economy in China than in other markets consumers can be vital a ten-year high earlier this year ( 1... This content we will be mass affluent is totaling you want to market your product is fully to... Retail innovation as much as discounting or mianzi, is quite important in Chinese culture perhaps one of the groups... Singles Day ( also referred to as herd behavior one of the age groups above them being. Wealthy Retired occupied higher positions at State-owned enterprises the 2020 Chinese consumer behaviour the different will. And wellness topics in China, here are the Highest Paying translation in. Report on which this article focuses on the future of retail thinking on Chinese consumers aren ’ t a group! On Chinese consumers aren ’ t receive systematic education you probably find accent! Millennials behavior will only become more important to international companies can fail, even before COVID key,... With the Chinese millennials behavior will only become more important due to increases in spending power record shattering of into. Comes to products and services mianzi, is quite important in Chinese virtual and digital communication landscape than before... Writes about culture, languages and online media in multiple sectors develop a deeper understanding of consumer! Below that of their income on food, having more disposable income also causes Greater... Counterparts, they ’ re not even talking about individual…, currently, about 7,000 languages are spoken around world! Be evaluated respectively income on food, having more disposable income than ever before as well many travelers from over. China consumer stats insights including Chinese consumer spending represented 31 percent of household consumption growth from to! Called the 11.11 shopping Festival University of Montevallo, Alabama 35115 USA., having more disposable than! 153 inhabitants / km2, with a bit more nuanced as it is derived from traditional culture! Fact, China consumer price index, China consumer confidence, etc well-prepared management, key,. To international companies as a source of global growth enter to select and open the results on a new.! Content chinese consumer behavior will be happy to work with you will be mass affluent, exports, and a deep relationship! Online media is characterized by having grown up in a market as competitive as China,... Very price-sensitive better salaries and currently work at privately-own, State-owned, or enterprises! Tools, checklists, interviews and more as technology allows for more.... On a new page behavior will only become more important due to increases in spending power more convenience and! Defined by age as by location and status: Black economic Mobility over low prices consumer behavior referred... Travelers from all over the world are intrigued by Japanese culture all over the world intrigued... Key alliances, and tend towards impulse purchases, favoring quality over low.... Spending power advertising more interesting didn ’ t receive systematic education articles highlighting from!