Upgrading in Progress' - . Consumers are still confident but undergoing transformation $25 billion

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  • 'Upgrading in Progress' China Consumer Trends

  • 1. Consumers are still

    confident but undergoing transformation

    $25 billion in sales

    $1 billion in transactions per hour

    Increased by 40% (YoY)

  • China's Consumer Confidence Index

    Data Source: National Bureau of Stastistics of China

  • Household Debt

    Income Growth

    Real Estate Price

    Healthcare

    Tier 2-3 Cities

    Tech-driven 'New Retails'

  • 2. Consumers are living

    healthier & more environmental friendly

    lives

    65% of the people are seeking to lead a healthier lifestyle

    73% of the people feel guilty about lifestyles that damage the

    environment

    80% of the people believe that good companies & brands should be environmentally responsible

  • What do consumers value in your product?

    Safety: 63%

    Healthy: 58%

    Practical: 57%

    Environmental-Friedly: 52%

    Novel & Unique: 40%

    High-End: 38% Data Source: China Consumer Confidence Survey

  • Un-healthy

    Bio

    Indifferent

    Active

    Chemical

    Natural

    Petrol

    Electric

  • 3. The 'Post-90s' are

    becoming the driving force for consumption

    16% of the Chinese population today.

    Will account for more than 20% of the consumption growth between now and 2030.

    'Digital Natives' - 73% made purchases online

  • 'Post-90s' are more open to trade up and to try new things

    90s 80s 70s

    44%

    31%

    25%

    52%

    29%

    19%

    50%

    29%

    21%

    Try New ThingsBuy BetterBuy More

    Data Source: China Consumer Confidence Survey

  • The 'Post- 90s'

    Zhihu Knowlege sharing

    platform

    Bilibili Video & livestreaming

    platform

    Douban Community of interests

    Weibo Similar to Twitter

    Douyin Short video platform

    WeChat With social features similar to Facebook

    Social media that help to connect with the 'Post-90s'

  • 4. A blurred line between local & foreign brands In 2012, Chinese brands

    accounted for 43 percent of the market in personal digital gadgets

    versus 63 percent in 2017.

    In personal care, Chinese brands made up 76% of the market in 2017 compared with

    61% in 2012.

  • Consumers' preference for local vs. foreign brands

    Data Source: Mckinsey Co.

    9%

    Foreign Local 91%Fresh Food

    15% 85%Beer

    19% 81%Personal Care

    24% 76%Apparel & Footwear

    42%Fahsion Accessories 58%

    49% 51%Color Cosmestics

  • Be local for the local market

    Example: BMW's localized visuals combine its futuristic car with elements from traditional Chinese painting and caligraphy and a

    slogan that is truly localized.

  • About Us

    BlueFocus is one of the most recognized communications services group originated in China, employing 5,000 employees globally working in 100

    offices in more than 10 countries.

    The company provides a wide spectrum of marketing and brand management services across disciplines of Strategy, Digital, Advertising, Media, Social, PR, Design, Branding, CRM, Data, E-Commerce and

    Mobile Solutions.

  • Thank You