http://www.rolandberger.com/news/2009-06-25-rbsc-news-ChineseConsumerSurvey.html
Download: http://www.rolandberger.com/medi ... ssue06_20090625.pdf
First annual report of Roland Berger Chinese consumer market survey
With the world economy in a deep crisis andconsumer confidence low everywhere, hopes rest on domestic consumptionin China. Annual growth in GDP is currently forecast at about 7.6%,from a total of USD 3.35 trillion in 2009 to USD 5.28 trillion in 2015.Used to seeing the Chinese as producers rather than consumers, the Weststill has a relatively limited knowledge about the Chinese consumerprofile. To fill this gap, Roland Berger has launched an ongoing surveyand released its first annual report on the Chinese consumer.
"Everybodyis watching to see how China's domestic consumption trends unfold in2009 as exports are hit by the world economic crisis," saysCharles-Edouard Bouée, Roland Berger’s Regional Coordinator Asia andPresident Greater China. The authors can draw on Roland Berger's overtwenty-five years of experience in the country, with more than 200assignments each year, during which over 80,000 interviews wereconducted. They present their findings at a time when the developmentof the Chinese consumer market is of critical concern to companies allover the world.
Ignatius Tong, Partner and Vice PresidentGreater China and an expert for Consumer Goods and Retail, points outthat knowing the customer base is vital for any business striving topenetrate or survive on the Chinese market: "More than ever, fastmoving consumer goods must be tailored to specific consumer needs. Thisrequires a more insightful understanding of consumers, one that goesbeyond mere demographics."
To complement its existing expertise,Roland Berger commissioned a survey of over 12,000 adult Chinesebetween the ages of 17 and 64 from cities of all sizes. Using RolandBerger's unique RB Profiler, a tool for strategic brand management, theteam analyzed the data gathered and identified eight consumerarchetypes for China: the traditionalist, the modern performer, theminimalist, the hedonist, the conformist, the progressive maximalist,the traditional maximalist and the self-centered type. These can beused to match any product with consumer preferences.
Six recommendations
Six points to be kept in mind by all companies active in China were distilled from the survey's findings:
• Don’t disregard the smaller cities
• Concentrate on under-40s
• Strengthen your brand
• Beware of the pitfalls of Chinese sales channels
• Go green
• Improve your product definition
Weak brands and unexpected results
JohnShen, Partner in the Automotive Competence Center, points out howcritical brand management has become: "Brand loyalty can only benurtured and enhanced through the consistent delivery of brand valuesat every customer touch point. Brand strategy and brand managementshould be at the top of the agenda for every CEO."
The reportreveals some unexpected results: People in tier-3 cities are lesscost-sensitive than those in megacities. Between 85% and 88% of allrespondents claimed they wouldn't buy products from a company they knewwas harming the environment. Well over 60% of respondents thought theyhad a good knowledge of fashion. For grocery shopping, the size of cityis a more critical indicator than size of income, while interest inWestern products is high all over.
Survey enhanced by top-level interviews and fresh perspectives
Charles-EdouardBouée says he was particularly pleased to get insight from two key CEOsof Western corporations. The report includes interviews with PaoloGasparini, CEO of L'Oreal China, and Günter Butschek, President and CEOof Beijing Benz Daimler-Chrysler (BBDC). Both companies have beenoperating successfully in China for many years.
The report alsocontains a chapter by CIC, the leading Internet Word of Mouth (IWOM)research and consulting firm in China. CIC uses IWOM mining andanalysis techniques to identify Chinese consumer attitudes andbehavior. For the Roland Berger survey, CIC focuses on attitudes towardthe different car brands available in China.
Jun 25, 2009