December 2009 / January 2010 - Association of Dutch Businessmen

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Business What does a Chinese consumer want? By Frank Kuijsters Crisis or not, the Chinese economy continues to grow. The inhabitants of the People’s Republic are increasingly affluent. It is a dream market for many companies. But how do you get solid foothold? The Chinese today is not the same as him of a few years ago. The living room of a family in a town like Shaoxing, in the east of the country, can now look just like those of a middle class family from Alkmaar or Oss. Today, the modern Chinese will be able to meet all his basic needs, and perhaps looks like the Westerner of a few generations ago. Yet he is looking for the luxury and comfort to match his new standard of living. It appears that the prosperity of the average Chinese in the coming years continues to rise rapidly. The gross national product is still growing, global crisis or not. Companies from around the world closely watch the Chinese consumers finding increasing financial prosperity. A few years ago DVD players, iPods, watches and mobile phones were enthusiastically welcomed and sold like hot cakes. But Chinese consumers are with their time. An overdose of choice and a growing welfare standard makes him more demanding and less satisfied. A proper strategy that is responsive to the wishes of modern Chinese is the key to business success in China. Metropolis But what are some 1.3 billion Chinese people today waiting for? A concrete top ten popular products or services is impossible to compile. But here some recommendations to get the modern Chinese onto your side. First: Focus on the “smaller” cities like Chengdu and Xiamen. Research indicates these places, where the average population still varies from 2 to 12 million people, as the most fertile markets for the moment. The population is not primarily critical, but the economic development, purchasing power and social status of the residents determine the attractiveness of the metropolis in the making. Vol.19 • No. 10 • December 2009 / January 2010
Business Second: The Chinese over 40 years old are as a customer much less interesting than those in their twenties and thirties. The reforms introduced by Deng Xiaoping in the early eighties marked the beginning of the new China. The Chinese in their twenties and thirties have grown up in a market oriented China and are thus more open to foreign influence and innovations. Moreover, they have considerably more disposable income than older compatriots. Third: Invest in building a relationship with the Chinese consumer. Loyalty in Chinese goes far, especially in their choice of brands. But a brand must invest heavily to win the confidence of Chinese people. Branding is therefore crucial. That effort is often rewarded, the chances are that a Chinese woman who is satisfied with the cream of L’Oreal, will continue to buy L’Oreal for the rest of her life. For international brands there is a big challenge, because Chinese are naturally attached to home-grown products. Skepticism about import products is particularly with older, more traditional Chinese. Yet the young, modern Chinese is very explicitly looking for Western brands. Fourth: Choose the right sales channel. Modern Chinese are fond of shopping malls and hypermarkets, huge supermarkets where besides food, things like clothing and electronics are sold. The French Carrefour recently opened its 135 th store, the American Wal-Mart has opened this year 100 Shops. Whether a Chinese goes for his shopping to a mall, Wal-Mart, grocery store or uses the internet, all depends on his domicile. Smaller cities don’t always have a hypermarket, just like big cities virtually have no small neighborhood supermarkets anymore. Behind sale on the Internet is a great exclamation mark: the rise of Chinese online hoppers is unprecedented. Last year their number grew by over 137 percent, representing a flow of nearly 18 billion U.S. dollars. Finally: Think of the environment. Chinese consumers are increasingly environmentally conscious. Modern Chinese have already expressed a preference for sustainable business. Selfish consumers Researchers have identified eight different archetypes of the Chinese consumers in the 21 st century. The detailed profiles can be used with a product to match consumer preferences. 1. Egoists (21.3%) People over 30, high income, averse to traditional values, eccentric, the early adopters. 2. Hedonists (15.1%) Average income, attracted by anything new and trendy, especially out on pleasure and comfort. 3. Traditional maximalists (12%) Thirties, low incomes, combined with a traditional mind up consumerism, status oriented, but their buying behavior influenced by traditional beliefs. 4. Minimalist (11.8%) Predominantly women, risk-and little interest in new technology or innovation. Looking for the best value for money. Limit their consumption to basic necessities. 5. Modern performers (11.5%) The serious consumer looking for the best quality and would be willing to pay more. Less sensitive trend, focus on career. 6. Progressive maximalists (11.1%) Mostly men, average age 34 years, the richest little interested in environmental or social issues, especially from its own success and showing them. 7. Traditionalists (9.4%) The typical small businessman, low price-conscious, especially for the long term. Family life and provide a good stable home and determine consumer attitudes. 8. Conformists (7.9%) 40 +, mostly women, great value to social and environmental rules, little interest in trends or status. Source: Roland Berger Strategy Consultants SKYPE INTERNET AANSLUITING SOFTWARE & HARDWARE Vol.19 • No. 10 • December 2009 / January 2010
Page 1: December 2009 / January 2010 MITA 3
Page 4 and 5: A monthly publication of the Associ
Page 6 and 7: Business World Expo 2010 Shanghai C
Page 10 and 11: Business Rich, Richer, Richest: Wea
Page 12 and 13: Business Building business ties By
Page 14 and 15: Business My Chinese adventure: host
Page 16 and 17: Business Under Chinese management B
Page 18 and 19: Green Page Low Carbon City Initiati
Page 20 and 21: Travel China beaches By Sara Caris
Page 22 and 23: Interview Ask4Me in Guangzhou By Fr
Page 24 and 25: Interview Doing business in China,
Page 26 and 27: Interview Vendors (ISVs) to help th
Page 28 and 29: Special Tibet, or did the 13 th Dal
Page 30 and 31: Know your tax China challenges Spec
Page 32 and 33: Business news Sources: Het Financie
Page 34 and 35: Event Agenda BODY WORLDS: The origi
Page 36 and 37: Conference Calendar A selection of
Page 38 and 39: Association Info New Members Anne E
Page 40: Connected Heart-to-heart Reserved F

December 2009 / January 2010 - Association of Dutch Businessmen

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