Commentary

Web Plays Key Role in Chinese Economy

Web Plays Key Role in Chinese Economy

According to the BIGresearch 1st Quarter 2007 edition of their China Quarterly Survey, it's the Chinese consumer that's playing a starring role in the growth of the Chinese economy. The 18-34 age group of 380 million, with 191 being men, are large consumers of luxury brands and other key consumables that multi-national marketers want to convert as customers.

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Key findings of the survey include such things as:

  • The grocery market changes as indigenous grocer Hualian slips past Carrefour and Wal-Mart to the #1 position
  • European brands continue to be preferred above U.S. brands in key categories such as Clothing, Cosmetics, Furniture and Jewelry
  • Consumer confidence remains very high
  • Planned expenditures on electronics are much higher in China than in the U.S.
  • Chinese men and women say surfing the net is #1 leisure activity
  • Word of mouth is even more influential to Chinese consumers than U.S. for Electronics, Clothing, Autos and Pharmaceuticals

Though Word of Mouth ranks as the number one influence for electronics purchases for men ages 18-34 at 52.6% in the U.S., only 38.6% of Chinese men ages 18-34 say the same.

Joe Pilotta, VP of Research for BIGresearch, says "Understanding how the Chinese consumers want to be communicated with and knowing which media have the greatest influence on purchases can be a stumbling block for multi-national marketers who try to import media plans from their home markets to China. Advertisers need to understand how their consumer base prefers to receive their messages and adjust their allocations accordingly,"

Top 5 Media Influences for Electronics (Men Ages 18-34)

China

United States

Read article on product

Word of Mouth TV/Broadcast

Magazines

Internet Advertising

Read article on product Magazines

TV/Broadcast

Word of Mouth 

Internet Advertising

Source: BIGresearch, April 2007

The China Quarterly, primarily tracking 18 to 34 year olds' positions on purchase behaviors, brand preferences, purchase intentions, product usage, health topics and future spending in key product categories, as well as media consumption, simultaneous media usage and media influence on purchases.

For additional information on BIGresearch's China Quarterly, please go here.
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