China has emerged as the fastest growing economy of the world, thus making it very imperative for businesses to understand the Chinese consumers and their buying trends and behavior.
The traditional Chinese consumer more often, preferred price over quality, however that does not seem to be true in case of new generations of Chinese consumers, who are particular about the quality of the product than anything else. In the past three decades the buying behavior of Chinese consumers have changed drastically and is more inclined towards the new trends followed across the globe including western world.
Chinese consumer profiling can be done in the following segments:
- Baby Boomers group- 1- Careful Chinese consumer who are mostly in the retired phase, are those who have seen instable political and economic situations during their growing age, did not get quality education and worked mostly in service and agricultural sector, are more sensitive towards price of the product than anything else.
- Baby Boomers group- 2- These Chinese consumers, similar to group 1 faced obstacles in personal growth and development but they overcomes it through hard work, working in government agencies and businesses providing them with higher wages and incentives, and therefore are less price sensitive and also consider quality
of product as an important attribute. - Generation X– done These Chinese consumers are in their late 30’s and early 50’s, who are well educated, earning good salaries to meet higher standard of living other than the base necessities. These consumers spend significant amount on health products, luxury goods and convenience in carrying out their day to day activities,
at the same time saves a reasonable amount for their children education, and future well being. - Generation Y- These consumer groups who are in their 20’s are born in the era in which China implemented one child policy. Their buying habits is drastically different from their parents, are very much similar to western countries trends. They are more impulsive, aggressive and are very less price sensitive. Their priority for
buying a product is style, quality, status, brand image etc. and price factor comes down in the list. This group is the major contributor in e-commerce business in china, and therefore making the e-commerce users (210 million) world’s largest as compared to that of Unites States (170 million).
The other minor groups are very affluent, migrant workers, and foreign nationals whose profiles are more or less influenced by either local or national trends.The major product categories for Chinese consumers are Health
products, toys, personal care products, convenience foods, automobiles, baby care, technology etc. Lets take an example if you are consulting an Australian company planning on exporting high end Deli food products to China then who can be your Chinese Consumer?
Working Couples: The target customers can be working couples. As both husband and wife are working, it will be taking lot of time to prepare the breakfast. Thus these deli foods, which are specially done for the people to easily grab it and have for their lunch or breakfast. They need delicatessen food for maintaining their time.
Bachelors: Most of the international students or employed persons in China, might find it difficult to cook and
simultaneously do their daily chores. So these people will be much likely to buy deli foods to save their time and energy. Dairies and other meat products are most loved and purchased deli foods by them.
May be this helps!!
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@Swapnil you can now refer the next article named the way singaporeans live for your interest on Singapore!
@Swapnil Sure I can write about that!!
Thanks for sharing the profiling of Chinese customers.
I would also love to know about Singapore and their buying habits… if possible