To Unlock the Chinese Market,Keys are Here
Chinese patrons had made conspicuous contributions to the growth of some international brands by buying their goods or service in stunning amounts, however, there were a few brands had left China with poor performance, and some are still struggling to find the keys for the Chinese markets. Even the technology giant, Amazon, who has the ambition to ‘engulf the whole world’， has only less than 1% of market share of the Chinese online retail market.
What are the features of Chinese Market compared to Western Market? What changes has Chinese Marketing been experiencing? These two questions may pop up in your mind.
1. Every brand serves as an ID tag for Chinese
Every time when Apple launches its new generation of iPhone, a joke will repeatedly repeat on line: ‘I am going to sell my kidney again for new iPhone.’ The Chinese youth mock their own vanity with this joke.
The rich identify their social class by driving luxury cars and using luxury brands, while those who are not that rich will also show off less luxury goods to symbolize that they are not far from the top of social pyramid. From a single cup of Starbucks coffee to a Ferrari, every item of goods signify a social status and lifestyle.
2. rend of Consumption Upgrade
Coffee-brewing shops and beer houses have mushroomed across China, a country where tea has been popular for centuries yet the humble instant noodle, a once very popular product, is experiencing plummeting sales. This is just an example of Chinese consumption upgrade.
By the prediction of the Economist Intelligence Unit, the proportion of low-income group in China will drop significantly, middle-income earners will be enlarged, and the growth rate of high income group will be faster by 2030. By that time, China would be more like a middle class society, even though income inequity will still pose a challenge. Chinese consumers will have higher expectations for better quality goods. Price will no longer be the deciding factor for buying decisions, and there lies the great opportunities for international brands.
3． Prosperity of online ads will be an indispensable method to reach your targeted demographics.
If you live in any Chinese city, you would find that Internet has become overwhelmingly involved in every aspects of life, socializing, shopping, and paying.
4． Retail Industry Revolution , a gold mine emerges
When it comes to which aspect China is outpacing its Western counterparts, the brand new retail formats must be accounted for.
By skipping the PC era and credit card era, many Chinese consumers go directly to the smartphone era and mobile pay era. According to data of the Ministry of Commerce, the total volume of online retail reached CNY 5.16 trillion. Mobile-shopping occupied 70% of total on-line shopping amounts, and mobile pay accounted for 67.5 of gross trading. Besides, e-commerce shorten the distance between the international brands and low tier cities. A new gold mine looms.