Major Values Shift... Chinese Consumers Strive for Success
A 2007 GfK Roper Reports(R) Worldwide survey reveals consumer confidence in China has soared over recent years, occupying the second place spot after India (84%) with 82% of respondents agreeing they will be better off in the next 12 months. In comparison, the U.S. ranked fifth (68%) behind India, China, Mexico (72%) and Canada (71%). This rise in consumer confidence reflects Chinese consumers' increasing focus on personal achievement and financial success, ultimately impacting purchasing patterns.
Indeed, today's Chinese individuals are adopting more of a "striver" or "achiever" mentality. The number of China's consumers who place importance on personal values such as wealth, power, material security and status experienced significant increases since the turn of millennium. Comparatively, Americans are more outwardly focused, placing greater importance on values such as "social tolerance" and "social responsibility."
"Chinese consumers are driven more and more by their desire for social status, which is reflected in their buying behaviors, particularly with respect to products positioned as status symbols," adds Veronica Chen, Senior Market Analyst with GfK Roper Consulting in the U.S. "However, it's also important to keep in mind that, as competition heats up and China's individuals face increasing product options, offering status or prestige is not enough. It's increasingly vital for brands to differentiate themselves and connect with consumers on an emotional level."
Understanding the New Chinese Consumer
Four key themes define the mindset shift underway in China. The first is their focus on striving: for success, for wealth, for power and for material security. More than half (59%) of Chinese consumers say they look upon their earnings as a statement of their success, compared to 51% of the global population.
The second shift is a renewed focus on self. Individuals are paying increased attention to achieving greater measures of health, beauty, freedom and individuality. Indeed, a majority (65%) of Chinese consumers agree that people who don't care about their appearance don't care about themselves, compared to the global average of 56%.
The desire for indulgence is the third core change. Though China's individuals are working harder to reach their goals, they are also looking to reward themselves. "Having fun" is one of the fastest-growing values among Chinese consumers; ranked in 2007 as the 15th most important on a list of 60, compared to 21st globally.
Leading the Green Charge
The final evolution involves social consciousness. Indeed, preservation of the environment is a key issue among the Chinese population with 42% listing pollution as one of their three main concerns, just behind recession and unemployment (43%). Compare this to 22% of the global population who cite environmental pollution as a top three concern. Additionally, 65% of Chinese car owners say it's important for their vehicle to be environmentally friendly versus just 40% of the global population.
