-- Generational differences pose challenges. Because China is changing so fast, generations only a decade apart have grown up in quite different circumstances, and that has created some striking cross-generational disparities. -- Trading up beats trading down. The percentage of Chinese consumers who are planning to increase their spending in the near future is more than six times that of those who will spend less (see exhibit). That is a much wider spread than in either the United States or Western Europe. -- Brands matter more than in the West. Half of the Chinese who trade up said they would purchase a product because of its brand name, whereas only 33 percent in the United States and 20 percent in Western Europe would do so.The report warns that marketers should beware of taking too simplistic a view of Chinese consumers' attitudes toward spending. Decades of rapid change have brought stress and insecurity, and a greater percentage of Chinese report such feelings than do consumers in other countries. "Not only does China's market represent a variety of demographic segments with divergent cultural experiences, but also the segments are constantly shifting," noted Carol Liao, a Hong Kong-based partner who heads BCG's Center for Consumer Insight in Asia. "To anticipate the shifts, it is critical to develop an intuitive understanding of how customers think and feel about their lives, keep a close watch on consumption trends, and focus on building sustainable brand loyalty." To receive a copy of "Winning the Hearts and Minds of China's Consumers" or to schedule an interview with one of the authors, please contact Eric Gregoire at + 1 617-854-4570 or gregoire.eric@bcg.com. About The Boston Consulting Group The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 66 offices in 38 countries. For more information, please visit www.bcg.com.
Contact Information: Contact: Eric Gregoire + 1 617-854-4570 .