An expert on China’s middle class, Helen H. Wang shared her thoughts on today’s Chinese consumer in a recent opinion piece on Forbes.
Despite a slowing economy, Chinese consumers are quite confident about the future. Over half of them expect higher incomes over the next five years, compared to 32% of American consumers and 30% UK consumers (based on 10,000 individuals surveyed by McKinsey), and consumer spending in 2015 increased approximately 13 percent.
To target China’s middle class effectively, here’s what you need to know:
1. Chinese consumers are health conscious
Not only is food safety a huge concern — Chinese consumers are trading Western fast food for fresh juices and organic foods. They are also exercising more, with 73% taking part in some form of fitness.
2. Family equals success
The ultimate form of success for Chinese consumers is to have a happy family unit (mom, dad, child and grandparents), and there is nothing better than a trip to the mall together. Shopping malls increasingly offer a “retail-tainment” experience that the whole family can enjoy.
3. They love to travel (and shop)
In 2015, more than 70 million Chinese consumers went overseas, and 80 percent of them made purchases while traveling. Their international duty-free shopping increased 58 percent last year, and half of their watch and handbag purchases are made overseas.
Wang also mentions how quick Chinese consumers are at adopting new trends. Moving away from basic needs, they now spend much more on travel, leisure and entertainment, and prefer premium goods and services.
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(Source: Forbes)