This week I´ve read an article at McKinsey Quarterly entitled “China´s confident consumers” written by Yuval Atsmon and Max Magni, principals at McKinsey Shanghai and Honk Kong respectlively. Their article is based on McKinsey´s report 2011 Annual Chinese Consumer Study. It focuses on three findings in the report:
1. Chinese consumer´s confidence rises. Chinese consumer´s confidence in their financial future rises compared to 2010 (58% expected their incomes to rise next year vs. 39% in 2010)
2. Chinese consumer…not that loyal. Although they place high value in brands as they guarantee quality, safety and reliability, that does not seem to translate into loyalty. The number of brands in their “repertoire” keeps rising.
3. Growth drivers: first-time buyers lose importance. First time buyers used to be the main growth driver ten years ago. Currently it is not the case for mature categories and developed areas but it is still an important driver for less mature categories, big ticket items or less developed geographical areas.
Read their full article here.
