Related News
Chinese consumers leapfrog expectation of multinationals
By Wang Yanlin |
June 13, 2011, Monday
|
Online Edition
Online Edition
RAPID changes in consumer behavior are making market competition fiercer in China, anticipated to be the world's second-largest consumer market by 2015, and multinationals should be aware of the fast rise of Chinese rivals, said a survey released today by the American Chamber of Commerce in Shanghai.
The survey based on interviews with 135 companies found that the increased use of Internet and mobile communications among Chinese consumers is having a dramatic impact on how they learn and shop.
The growing popularity of microblog, or Weibo, and easier web connection through mobile phones, has transformed the entire marketing of Chinese consumer goods. Online shopping, gaming and social media are found to be adopted by a large chunk of China's emerging consumer class.
"Thus to win the race in China's consumer market, you have to secure your position in e-commerce," said JoAnne S Bessler, a partner at Booz & Co, which co-authored the survey report.
Chinese consumers are also frog-leaping the expectations of foreign manufacturers as they get more exposure by travel and wider access to online media. This requires companies to offer products of higher quality.
"These have led to changes in how, when, where and why products and services are consumed," the survey said.
It also noted that Chinese companies are catching up fast and have even overtaken their foreign competitors. A surprising 93 percent of Chinese companies said they are already or will soon be involved in e-commerce, whereas 41 percent of multinational companies said they have not yet implemented an online shopping strategy and don't plan to do so.
The survey also found neither Western nor Chinese companies thought they are sufficiently prepared for any of these key changes, but Chinese companies turned out to be more optimistic.
The survey based on interviews with 135 companies found that the increased use of Internet and mobile communications among Chinese consumers is having a dramatic impact on how they learn and shop.
The growing popularity of microblog, or Weibo, and easier web connection through mobile phones, has transformed the entire marketing of Chinese consumer goods. Online shopping, gaming and social media are found to be adopted by a large chunk of China's emerging consumer class.
"Thus to win the race in China's consumer market, you have to secure your position in e-commerce," said JoAnne S Bessler, a partner at Booz & Co, which co-authored the survey report.
Chinese consumers are also frog-leaping the expectations of foreign manufacturers as they get more exposure by travel and wider access to online media. This requires companies to offer products of higher quality.
"These have led to changes in how, when, where and why products and services are consumed," the survey said.
It also noted that Chinese companies are catching up fast and have even overtaken their foreign competitors. A surprising 93 percent of Chinese companies said they are already or will soon be involved in e-commerce, whereas 41 percent of multinational companies said they have not yet implemented an online shopping strategy and don't plan to do so.
The survey also found neither Western nor Chinese companies thought they are sufficiently prepared for any of these key changes, but Chinese companies turned out to be more optimistic.
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