2012 Annual Chinese consumer survey–From mass to mainstream
As we are going on our GIE trip soon, we’ll have the chance to interact with customers in different countries. We have talked a lot of emerging market in our GIE class. However, this huge emerging market differs a lot from country to country, culture to culture.
China, as the second largest economy after United States and the largest emerging market in the world, has special customers to understand. Most large, consumer-facing companies have long realized that they will need China’s growth to power their own in the next decade. But to keep pace, they will also need to understand the economic, societal, and demographic changes that are shaping consumers’ profiles and the way they spend.
Since 2005, McKinsey has conducted annual consumer surveys in China, interviewing in total more than 60,000 people in over 60 cities. The surveys have tracked the growth of incomes, shifting spending patterns, rising expectations and the development of many different consumer segments. Those surveys provide insights of Chinese customers.
I’d like to share with you the annual Chinese consumer report of 2012.
In general, the urban population became increasingly dominated by “new mainstream consumers”— those with incomes above RMB 106,000 (equivalent to $16,000). However, a dichotomy is emerging, between this segment and the broader mass of consumers who are still in the early stages of satisfying desires for goods and services that exceed basic needs. Because the dichotomy between the two groups is materializing so rapidly, companies will have to adjust their marketing strategies with dispatch to serve both market segments. Here is the link for more information and full report.