Magazines Archives - 2007 August

Young Chinese exude high confidence, exert spending power
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CHINA’S young upwardly-mobile urban consumers are fashion-conscious and prefer Chinese brands, leaving American, European and Japanese labels trailing in most categories. This is based on BIGresearch’s Q2 China Survey showing consumer confidence has risen, with spending expected to grow in all major categories. At press time, China’s stock market was up more than 43% since last March.

The June 2007 survey was conducted with a base of 2,317 young consumers, representing the country’s more than 380 million between the ages of 18 and 34 years. This is the key segment for luxury brands, electronics and other consumables, reported BIGresearch. Comparing the responses between young Chinese consumers and their American counterparts, the study noted the following key differences:

91.8% of the Chinese are confident/very confident about their economy for the next six months, compared with 47.7% of the Americans feeling the same about theirs.

More young Chinese than American consumers plan to pursue big-ticket items, including computers, furniture, home appliances, housing, jewellery, TVs, digital cameras and vacation travel.

Familiar labels are more important to 71.8% of the Chinese but only 54.7% of the Americans.

For 7.4% of Chinese consumers vs 18.5% of Americans, a sale is not important when buying clothes.

Young Chinese consumers, although entrenched in the digital world, are more influenced than young Americans by traditional media when buying electronics, clothing, motor vehicles and pharmaceuticals. However, they are more likely to surf the Internet, e-mail, blog or instant-message at leisure than the Americans, with 54.4% more inclined to research products online, compared with 49.8% of Americans.

“The young Chinese are avid consumers, but not [of] western (US) and eastern (Japan) products. They are unique. The popularity of Chinese products and brands are signs that US corporations, and advertising and marketing agencies are out of touch with the new Chinese consumer, and will continue to be until they ask the right questions and listen,” said Joe Pilotta, vice-president of research for BIGresearch.