Chinese consumers are increasingly opting for quality goods at higher prices and adopting online shopping and social media to gather product information - two key trends driving company strategy in China, according to a report jointly released by The American Chamber of Commerce in Shanghai (AmCham Shanghai) and Booz & Company.
The 2013 China Consumer Market Strategies, the third annual report based on a survey of nearly 90 Chinese and multinational companies (MNCs), measured how companies rank 7 major trends by importance and the approaches they take to respond to them.
China’s industrial output rose 9.7 percent in July, above expectations, while retail sales rose 13.2 percent and inflation steadied, possibly signalling that Beijing may keep monetary policy on hold.
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With the occasion of the release of its first half 2013 results, Hugo Boss‘ CEO Mark Langer said the number of people visiting malls in some smaller cities in China had fallen by as much as 20 percent, and that the group had to bring the quality of its mainland stores up to those in Hong Kong.
Many Chinese consumers have become more cautious about their spending as they feel the chill of the economic slowdown. Their response may cut the contribution of household spending to economic growth and see the country's already high household savings rate rise further this year.
The cost of luxury goods and services increased at their slowest pace for seven years last month because of China's economic slowdown and the government's anti-extravagance campaign, the Hurun Research Institute said in its latest report.
Foreign brands no longer have a natural advantage over Chinese local brands. They have to work hard to create and sustain their value proposition and maintain their niche in the hearts of Chinese consumers, according to a new report by marketing agency Epsilon.
Chinese consumer confidence rose modestly last month with sentiment improving over both current conditions and future expectations, Market News International (MNI), a unit of Deutsche Boerse Group, said in a report on Wednesday.
The MNI China Consumer Sentiment Indicator, a monthly measure of consumer confidence in the country, increased to 97.3 in June from 94.4 in May, breaking out of a very narrow range that fluctuated at around 95 since last November and reaching its highest level since June 2012.
China remains the top apparel market due to its market size and strong growth in clothing sales, according to management consulting firm A.T. Kearney.
The A.T. Kearney Retail Apparel Index revealed on Monday identifies the top 10 developing countries ranked in its Global Retail Development Index in terms of market attractiveness, retail development, and country risk for their clothing retail industries. It also includes a number of countries from Latin America and the Middle East showing that these regions continue to offer compelling opportunities.
The retail industry is expected to be a driving force of China’s economic development, and retail property rents in most Chinese cities will continue to increase according to CBRE’s latest report.
China’s tier II cities are also expected to experience a stable increase in the entries of new retailers.
In 2012, despite a slowdown in the growth of consumer goods, both income and retail sales continued double-digit growth.
China said on Sunday retail sales grew 12.9 percent in May from a year earlier, an envious gain from by global standards but below the government's full-year target at a time of worry in the country about the pace of economic growth.
May's retail sales rise compared with an increase of 12.8 percent increase in April and a government target of 14.5 percent for all of 2013. May export data post this weekend was below expectations.
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