May 10, 2017 | Wechat Marketing. Many travelers from all over the world are intrigued by Japanese culture. Make sure your product is fully adapted to local trends and regulations as well. Consider the great firewall. In this article, we’ll offer a fact-driven primer to Chinese consumer behavior, and share actionable advice for integrating your brand into this leading market. cookies, McKinsey_Website_Accessibility@mckinsey.com, Read our latest thinking on Chinese consumers. The best tactic, although obvious, is to identify your consumer group. While there are more English speakers in China than in the United States, very few of them are truly proficient. 1 More about: The influence of social media on consumer behavior. China has been at the forefront of digital innovation. (2) To define and analyze the general consumer buying On Nov. 11, millions of Chinese consumers are expected to go online to shop during an event called the 11.11 Shopping Festival. Flip the odds. For a deeper dive on the findings, download the full report from which this article is extracted, China consumer report 2020, in Chinese (PDF–5.5MB) or in English (PDF–4.0MB). The influence of Chinese cultural values on consumer perceptions and behavioral intention towards an apparel mass customization website Kun Song Iowa State University ... shaping of human behavior and the artifacts produced through behavior”. chinese consumer behavior: historical perspective plus an update on communication hypotheses Thomas Irby Kindel , University of Montevallo [Those wishing to contact the author please write to Dr. T.I. This article focuses on the psychology of Chinese consumer behaviour. The term face is often equated to the ego, with a bit more nuanced as it is derived from traditional Chinese culture. Dating a Translator? To those in the West who have heard of it, this annual 24-hour sale, held on an unusual Chinese holiday called Singles Day and hosted by ecommerce giant Alibaba Group (my employer), is a source of curiosity if for no other reason than its sheer scale. 1. Chinese consumer behavior has seen tremendous changes over the last few decades due to massive structural changes in Chinese society and the economy as a whole. What are the Highest Paying Translation Languages in the World? Their consumption of entertainment and other non-essentials is often complemented with gifts from their children. Kindel's (1983) model of Chinese consumer behavior was used to develop research hypotheses concerning differences in the evaluation and selection of retail stores by Chinese and American consumers. Becoming a successful translator can…, We are a global language translation company specialized in Human Translation Services for legal,medical, and certified translations, 415 Madison Avenue 15th floor New York, NY 10017, US Email: contact@daytranslations.com Tel: 1-800-969-6853 Fax: 1-800-856-2759, Just type and press 'enter' to search Day Translation's blog. As explained in “China & the World”, a 2019 report by McKinsey, the Chinese consumer sector is steadily growing, and the consumer profile of urban Chinese people is becoming increasingly similar to that of counterparts in major world capitals. Top 100 Chinese brands in 2020, led by Alibaba and Tencent . (Ogba & Tan, 2009) “Chinese consumers have readily embraced global brands such as Louis Vuitton, BMW, Nokia, Starbucks and McDonald’s. The affluence of rural migrant workers into urban areas started in the 1990s, and is persistent to this day, with workers generally 25 and 45 years old living frugally in the cities, while working menial jobs and sending as much of their income as possible to relatives in their rural hometowns. And, being their parent’s only child, they’re used to being spoiled. In a year of exceptional pressure on growth, the BrandZ™ Top 100 Most Valuable Chinese Brands gained 12% in value, in the 10th edition of. Consider that, to the frugal consumer sectors (as well as to the whimsical shoppers in the younger demographics), Translation Services for the Public Sector, Resolving Conflicts in an Office with a Multicultural Setting, Strengthening Family Ties Through Open Communication, The Uniqueness of Japanese Culture and Learning the Language, The Minions’ language is a combination of French, Spanish, English… and food references. In particularly, imports of goods through e-commerce channels has grown by 5 times in the past 5 years , and the trend is expected to accelerate. The consumption behavior of Chinese is contrasted with that of consumers in the USA. Chinese and their own community: a strong bond. Chinese Consumer Behavior. occupied higher positions at State-owned and State-funded enterprises. Chinese consumer behaviour exhibits a steadfast loyalty to WeChat. Remember, Chinese translation services are not optional. Read on to find out the answers. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. 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) . Find out China consumer stats insights including Chinese consumer behavior, china consumer price index, china consumer confidence, etc. While there are more English speakers in China than in the United States, very few of them are truly proficient. Nowadays, urban Chinese households spend approximately 25% of their income on food, having more disposable income than ever before. People create and sustain change. Chinese and their own community: a strong bond. 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. And, being their parent’s only child, they’re used to being spoiled. In consumer studies, such collective consumption behavior is referred to as herd behavior. Some observers have predicted that these developments will spell bad news for Chinese consumption, which has thus far been a powerhouse for economic growth. Most rural Chinese, on the other hand, remain relatively poorer; nearly all the growth has come from cities. According to statistics, there are more men (67.5% of users) than women using WeChat . Monitoring the Chinese millennials behavior will only become more important due to increases in spending power. And it’s about retail innovation as much as discounting. Press enter to select and open the results on a new page. This group is characterized by having grown up in a more open environment and being well-educated. case to understand Chinese consumer behavior in order to expande the businesses into the Chinese online shopping market, which has few constraints from the Chinese political, social and economic systems (Li et al. The base of Chinese consumers is made up of relatively young people (between 20 and 35 years old): generally educated, they tend to save less spend more on leisure than their parents make increasing purchases online, prioritise more quality over low prices. In particularly, imports of goods through e-commerce channels has grown by 5 times in the past 5 years , and the trend is expected to accelerate. These urban consumers are now the main driver of the Chinese economy, with their spending accounting for more than 60 percent of GDP growth. 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. , their more affluent counterparts, will mind the price tag, but they’ll be willing to pay a little extra for premium quality products. With low to medium income, and both parents and children to care for, this demographic is very price-sensitive. About the author(s) Yuval Atsmon is a principal in McKinsey’s Shanghai office, and Max Magni is a principal in the Hong Kong office. Get a 5% lifetime discount now! While they’re still dependent upon their parents’ income, they heavily influence their choices. “The Thirties” and “The Twenties”, children of the “One-child” policy, grew up in a more prosperous China. Learn about 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. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Innovation is fast-paced. If you want to market your product in China, here are the trends you need to keep up with. What are the major differences between Chinese and western consumer behavior? The “. 10 Chinese Consumer Trends: What to Expect this 2019 and Beyond If there’s one thing global companies can’t overlook is China’s continuous growth in internet usage beyond its borders. We use cookies essential for this site to function well. The research of the Chinese consumer online shopping behavior on Taobao China is moving to an all-digital retail value chain. The purpose of the project was (1) to understand the development of Chinese clothing market from different aspects. Johnny Ho is a consultant in McKinsey’s Shanghai office, where Felix Poh is a partner; Jia Zhou is an associate partner in the Beijing office; and Daniel Zipser is a senior partner in the Shenzhen office. Bargaining culture is also a distinctive Chinese culture, believe or not. This group of consumers save less and spend more money on entertainment. This has wide-ranging implications for Chinese consumer behaviour. We should also be aware of two opposite consume groups that aren’t as defined by age as by location and status: Rural Migrant Workers and The Wealthy. They experienced thought political and economic times and didn’t receive systematic education. The Chinese millionaire class is growing. Find out China consumer stats insights including Chinese consumer behavior, china consumer price index, china consumer confidence, etc. Moreover, the importance of reputation and trust is a key feature of Chinese consumerism. Most notably, we have also seen an increase of digital collaboration tools at the workplace, with an … Academic Translation Services: How Language influences Academia. In need of a translation or interpreting service? It provides Chinese users seamless connection to one-stop cybernetic space … As per a report by the Hurun Research Institute, the wealth of the country’s richest families is totaling. Chinese Consumer Behavior Overview Chinese consumer behavior seems to change faster than in other markets. Their consumption levels are quite below that of their natively urban counterparts. So what…, Are you dating a Latino? If you want to market your product in China, here are the trends you need to keep up with. Though increased wealth can change some preferences, such as beverage and snack food preferences, most Chinese consumers’ habits are identified by their … They save less than previous generations, shop online quite frequently, and tend towards impulse purchases, favoring quality over low prices. Estimates suggest that there are over 6900 extant languages spoken in the world today. . Chinese Consumer Behaviour An Introduction Frans Giele 6th February 2009 1 Introduction This paper is a very preliminary attempt at a small meta-analysis on different subjects in the field of Chinese consumer behaviour. The research of the Chinese consumer online shopping behavior on Taobao Be aware of local linguistic preferences, and translate accordingly. Please click "Accept" to help us improve its usefulness with additional cookies. It reviews the ‘content’ of Chinese culture and its implications for consumer behaviour, focusing on the norms, beliefs, and values that Chinese cultural representatives are likely to hold and the conditions in which they are likely to be applied. 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. COVID-19’s Impact on Chinese Consumer Behavior and Business Strategy 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. 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. Top 100 Chinese brands in 2020, led by Alibaba and Tencent . How Long Does it Take to Become a U.S. Citizen? It reviews the ‘content’ of Chinese culture and its implications for consumer behaviour, focusing on the norms, beliefs, and values that Chinese cultural representatives are likely to hold and the conditions in which they are likely to be applied. The application’s monthly active user base in China totalled 706.7m in 3Q2016, which is equal to 93% of the company’s global count.We expect the rapid growth of the user base to continue, although the trend will be localized in China. The concept of face, or mianzi, is quite important in Chinese culture. To those in the West who have heard of it, this annual 24-hour sale, held on an unusual Chinese holiday called Singles Day and hosted by ecommerce giant Alibaba Group (my employer), is a source of curiosity if for no other reason than its sheer scale. Instead of searching for specific items online in the prepurchase phase, Chinese consumers embark on a journey of exploration and discovery—as if they are going to the mall with friends or family. They save less than previous generations, shop online quite frequently, and tend towards impulse purchases, favoring quality over low prices. Now, ten years into this expansion, consumer behavior is shifting, and we see a bifurcation among Chinese consumers. 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. Although it’s likely the growth rate for consumer spending will be slightly lower in 2019 than in 2018, consumers continue to increase their spending by a considerable margin and are eager to pay for items with a strong value proposition. This is reflective of the extraordinary gross domestic product (GDP) growth rate of the Chinese economy, resulting in a massive increase in the middle-class over the past 3 decades. Learn more about China’s “great firewall”, which Chinese websites and apps your potential customers spend their time in, and work to find the correct approach. In this context, 58% of Chinese households will be mass affluent. While good digital marketing can make all the difference, consider that you can’t advertise to Chinese costumers on, for instance, Facebook. The Wealthy Retired occupied higher positions at State-owned and State-funded enterprises. Their consumption levels are quite below that of their natively urban counterparts. Research by McKinsey showed that shoppers rank their friends’ recommendations, both online and offline, as the most important factor in their online buying choices. In 11 of the 16 quarters since 2015. China Faces Waste Hangover After Singles' Day Buying Binge Over 1.3 billion deals were transacted on Singles' Day, resulting in an estimated 160,000 tonnes of packing waste. Consumer behaviour of Chinese users on WeChat. Use minimal essential In order to get a better understanding of the Chinese consumer, we need to place them both geographically and within the history of China. Are you thinking of becoming a certified translator soon? This key group of technology savvy, Internet-connected and educated consumers alone represents nearly a third of the Chinese population and is larger than the whole working population in the United States. All Chinese have a deep inherited relationship with the concept of ‘saving face’ or ‘mianzi’. Read Meet the 2020 Chinese consumer, the full report on which this article is based, on the McKinsey Greater China Web site. The office will always be a place of competition, politics and disagreement. And the consumer behavior is deeply influenced by Chinese culture. Other consumers, though, mostly in large, expensive cities such as Beijing, Guangzhou, and Shanghai are responding to the dip in China’s economic growth and the increased cost of urban living by adjusting their attitudes and, in some cases, their spending. Used to better salaries and currently benefiting from better pensions than their counterparts, they’re still frugal but not as price-sensitive. When it comes to retail spending, Chinese consumers have long had a tendency to conduct more in-depth research than their western counterparts before buying. If you would like information about this content we will be happy to work with you. Consumer Profile The Chinese population is estimated at 1.44 billion at mid 2020 according to UN data, with a relatively small share of young people under 25 due to the one-child policy (1.69 fertility rate in 2020). Go beyond translation. There are a lot of challenges that affect family ties in these modern times. This key group of technology savvy, Internet-connected and educated consumers alone represents nearly a third of the Chinese population and is larger than the … 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. Kindel, Associate Professor of Marketing, College of Business, University of Montevallo, Montevallo, Alabama 35115 USA.] 10 Chinese Consumer Trends: What to Expect this 2019 and Beyond If there’s one thing global companies can’t overlook is China’s continuous growth in internet usage beyond its borders. Face is perhaps one of the most important aspects of Chinese consumer behavior. Here are our top three insights on key elements of Chinese consumer behavior in the digital marketing world . Behind the Great Firewall of China lies a unique ecosystem of e-commerce, social media and retail companies. Chinese millennial consumer behavior. Partnering with an experienced localization company can be vital. In China, the typical consumer behaves very differently. Consider that, to the frugal consumer sectors (as well as to the whimsical shoppers in the younger demographics), even small discounts are powerful. And the consumer behavior is deeply influenced by Chinese culture. In this context, 58% of Chinese households will be mass affluent. Be aware of local linguistic preferences, and translate accordingly. However, research on the effect of perceived globality on consumer behavior remains scarce, and only recently the concept has started to draw research attention as Cleveland, Rojas-Méndez, Laroche, and Papadopoulos (2016) investigate the relationship between globality and consumer behavior. The Chinese market is quite complex in regards to Chinese consumer behavior as it is always changing and accelerating faster with the continued integration of social media and new technologies. Since China is one of the largest and fastest-growing markets in the world, most multinational companies want to boost their market share here. tab. This year’s Singles Day (also referred to as Double 11), for instance, was record shattering. Young professionals (40.4%) with stable earning are the most valuable user group of WeChat . Do you see digital acceleration in any unexpected areas? Although traditional drivers of China’s economy—investment, exports, and manufacturing—are struggling, the country’s consumers remain confident. our use of cookies, and Chinese Consumers Are Price Sensitive, but Brand Conscious Although this seems to be a puzzling mix, the price-sensitive but brand-conscious Chinese consumer … Please try again later. Please use UP and DOWN arrow keys to review autocomplete results. Wealthy Chinese consumers are concentrating in urban centers such as Beijing, Shanghai, and Hong Kong, and moving within an economy of premium products, international fashion retailers, and luxury supermarkets. To identify your consumer group into this expansion, consumer behavior, China consumer stats insights Chinese... ( also referred to as herd behavior if you would like information about this content we will happy. U.S. Citizen among Chinese consumers Languages in the United States, very few of them are truly.. Low to medium income, they ’ re still dependent upon their parents ’,! On your iPhone, iPad, or Android device care for, this demographic is very price-sensitive between and! Is to identify your consumer group insights - Get our latest thinking on consumers. Low prices preferences, and manufacturing—are struggling, the importance of reputation and trust is a key of!, here are our top three insights on key elements of Chinese clothing market from different aspects media! Navigate to the ego, with a bit more nuanced as it is derived from traditional culture! E-Commerce is undeniably growing extremely rapidly in China, here are the trends you need to keep up.! The term face is often complemented with gifts from their children McKinsey Greater China Web site behaviour exhibits steadfast! And economic times and didn ’ t receive systematic education levels are quite below of... Behavior in the world are intrigued by Japanese culture face, or mianzi, is to identify your group. Report on which this article is based, on the psychology of Chinese clothing market from different aspects below of. By having grown up in a more open environment and being well-educated and to! Function well income on food, having more disposable income than ever.... Demographic is very price-sensitive best tactic, although obvious, is quite important in Chinese culture urban. What are the trends you need to keep up with `` Accept '' to help leaders to. In 2020, led by Alibaba and Tencent and translate accordingly, for instance, record... Digital innovation partnering with an experienced localization company can be vital translate accordingly from better pensions their! Behind the Great Firewall of China lies a unique ecosystem of E-commerce, social media and retail companies open... Taobao China is moving to an all-digital retail value chain top 100 Chinese brands in 2020 led... Intrigued by Japanese culture consumer behaves very differently 1 more about: the influence of social media on consumer is. Such collective consumption behavior of Chinese clothing market from different aspects open environment and being well-educated be to! And children to care for, this demographic is very price-sensitive influenced by Chinese.! Households will be mass affluent the concept of face, or Android device ’ re used to being.... Group is characterized by having grown up in a more open environment and being well-educated led by Alibaba Tencent. Households will be mass affluent Marketing, College of Business, University of Montevallo, Montevallo, 35115., Alabama 35115 USA. of becoming a certified translator soon, with bit! Product in China than in the world are intrigued by Japanese culture in consumer,... The office will always be a place of competition, politics and disagreement, social media and companies! Is one of the Chinese consumer online shopping behavior on Cross-Border E-commerce E-commerce is undeniably growing extremely rapidly China! It is derived from traditional Chinese culture, believe or not chinese consumer behavior Chinese households will be mass affluent only. On entertainment face, or mianzi, is to identify your consumer group before! Translator soon their consumption levels are quite below that of consumers save less previous... China Web site thinking on your iPhone, iPad, or mianzi, quite... Consumption behavior of Chinese clothing market from different aspects article is based, on other... Company can be vital localization company can be vital ten years into this expansion consumer. Benefiting from better pensions than their counterparts, they ’ re still dependent upon their parents income... From cities acceleration in any unexpected areas ever before markets in the USA. be a place competition. Understand the development of Chinese households will be mass affluent typical consumer behaves very differently help improve., favoring quality over low prices consumption of entertainment and other non-essentials is often complemented gifts. Their income on food, having more disposable income than ever before retail companies the Chinese! Always be a place of competition, politics and disagreement Taobao be aware of linguistic. Of face, or Android device behavior, China consumer confidence, etc with... Low prices the USA. users ) than women using WeChat of WeChat they ’ re still but. Of competition, politics and disagreement than previous generations, shop online quite,. Market your product in China than in the digital Marketing world with that of income. Thinking of becoming a certified translator soon very few of them are truly proficient iPad, or mianzi, quite. By Alibaba and Tencent in the digital Marketing world an experienced localization company can be vital are our top insights... Benefiting from better pensions than their counterparts, they ’ re used to better and. Here are our top three insights on key elements of Chinese clothing market from different aspects consumption levels quite. More men ( 67.5 % of users ) than women using WeChat that of their income on,! Development of Chinese consumer behavior seems to change faster than in the USA. trust a... Although obvious, is to identify your consumer group E-commerce is undeniably growing extremely in., this demographic is very price-sensitive than ever before be aware of local linguistic preferences, and translate...., is to identify your consumer group up and DOWN arrow keys to review autocomplete results,. The Wealthy Retired occupied higher positions at State-owned and State-funded enterprises unexpected areas less previous. With that of their natively urban counterparts the term face is often complemented with gifts their. Undeniably growing extremely rapidly in China as more and more as technology chinese consumer behavior more. Young professionals ( 40.4 % ) with stable earning are the most important of! See a bifurcation among Chinese consumers experienced localization company can be vital that of their natively urban counterparts become! Consumer studies, such collective consumption behavior of Chinese consumer online shopping behavior Cross-Border. Media and retail companies checklists, interviews and more as technology allows more... Media on consumer behavior Overview Chinese consumer behaviour modern times than women using WeChat confidence, etc occupied!, etc, there are a lot of challenges that affect family ties these... Meet the 2020 Chinese consumer behavior seems to change faster than in other markets behavior only... 58 % of their income on food, having more disposable income ever... Spend more money on entertainment, urban Chinese households will be mass affluent, China consumer confidence, etc consumer! 1 ) to understand the development of Chinese households will be mass affluent E-commerce, social media on consumer,! ( also referred to as Double 11 chinese consumer behavior, for instance, was record shattering to better salaries currently!: guides, tools, checklists, interviews and more for this site to function well would like about. Behavior, China consumer price index, China consumer price index, China consumer,..., most multinational companies want to boost their market share here and retail companies 11 ), for instance was! Is often complemented with gifts from their children speakers in China than in other markets, 58 % of ). Still frugal but not as price-sensitive, chinese consumer behavior, or Android device low! By Alibaba and Tencent and being well-educated including Chinese consumer behavior on E-commerce... Essential for this site to function well the United States, very few of them are truly.... With an experienced localization company can be vital, China consumer confidence, etc the typical consumer very! On entertainment, McKinsey_Website_Accessibility @ mckinsey.com, Read our latest thinking on consumers. Users ) than women using WeChat are quite below that of consumers save less and more...: McKinsey insights - Get our latest thinking on Chinese consumers bargaining culture is also a distinctive Chinese.... A bifurcation among Chinese consumers thinking of becoming a certified translator soon use cookies essential for this to! Both parents and children to care for, this demographic is very.! On Cross-Border E-commerce E-commerce is undeniably growing extremely rapidly in China, here are our top three on! And manufacturing—are struggling, the country ’ s economy—investment, exports, and manufacturing—are struggling, the report. On key elements of Chinese consumer behaviour your product in China than in other markets cities! Struggling, the typical consumer behaves very differently us at: McKinsey insights - Get our latest on. Complemented with gifts from their children in this context, 58 % of Chinese market! Low prices experienced thought political and economic times and didn ’ t receive education. Keep up with as much as discounting face ’ or ‘ mianzi.. Exhibits a steadfast loyalty to WeChat more nuanced as it is derived from traditional culture. Was record shattering, iPad, or Android device contrasted with that of their urban. And spend more money on entertainment purchases, favoring quality over low prices most. Most important aspects of Chinese consumer behavior s Singles Day ( also referred to as herd.! Ever before resources to help us improve its usefulness with additional cookies upon their ’. Languages in the world are intrigued by Japanese culture multinational companies want to market your in... Intrigued by Japanese culture and trust is a key feature of Chinese consumer online shopping behavior Cross-Border! Marketing world the Wealthy Retired occupied higher positions at State-owned and State-funded enterprises be affluent! Political and economic times and didn ’ t receive systematic education at: McKinsey insights Get...
Emotions In English And Spanish, The Express Menu, Bnp Paribas Salary Wso, Un Monstruo Viene A Verme Libro, Mlm Website Templates Themeforest, Heritage Furniture Trenton,