Tell me and I forget. Teach me and I remember. Involve me and I learn. Benjamin Franklin

Monday, January 6, 2014

Marketing to China’s Middle Class

By Li Hong

China Business Council - January, 2014

China’s rapidly rising middle class is too important for any multinational company to ignore. In 2012, nearly a quarter of the population—or 300 million people—had “significant discretionary spending power,” according to the consulting firm Dragonomics. And to tap into the total financial assets of China’s middle class—roughly ¥1.3 million ($213,900) per capita, according to Forbes China—retailers are paying increasing attention to what China’s middle class wants.
Yet to succeed in China, marketers must keep in mind a few unique characteristics of the country’s middle class. First, they have a strong preference for novelty, which leads them to constantly seek out the newest products available. Second, they are early adapters of new technology and have embraced social and digital media. Finally, while they enjoy the status conferred by luxury brands, they usually lack the emotional ties that would lead to brand loyalty.

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