China's Super Consumers: What 1 Billion Customers Want and How to Sell It to Them

by Savio Chan

Chinese Consumers are Changing The World - Understand Them and Sell To Them China has transformed itself from a feudal economy in the 19th century, to Mao and Communism in the 20th century, to the largest consumer market in the world by the early 21st century. China's Super Consumers explores the extraordinary birth of consumerism in China and explains who these super consumers are. China's Super Consumers offers an in-depth explanation of what's inside the minds of Chinese consumers and explores what they buy, where they buy, how they buy, and most importantly why they buy.The book is filled with real-world stories of the foreign and domestic companies, leading brands, and top executives who have succeeded in selling to this burgeoning marketplace. This remarkable book also takes you inside the boardrooms of the people who understand Chinese consumers and have had success in the Chinese market.A hands-on resource for succeeding in the Chinese marketplace Filled with real-world stories of companies who have made an impact in China Discover what the Chinese consumer wants and how to deliver the goods Written by Savio Chan and Michael Zakkour, two leading experts on the Chinese market This book is an invaluable resource for anyone who wants a clear understanding of how China's Super Consumers are changing the world and how to sell to them.

Genres: Business, China

240 pages, Kindle Edition

First published January 1, 2014

Reviews

[Alan Wang · Rating 4 out of 5]

China is not one homogeneous market, it is made up of 22 different markets (geo, demo differences)

Chinese goods in dept stores are high because brands themselves must pay rent and operate the retail store. Reason why there are so many single stores at street level

Department stores vs Malls?

Mall rent highest on bottom floor and lowest at top floor...foot traffic decreases significantly further up you go.

Husband daycare in Chinese malls cuz men don’t want to shop

Chinese malls avg 4-6 floors

Supply Chain - meet and possibly expand customer demand in cost effective manner

Plan
Make
Store
Distribute
Sell
Customer Service

Strategy
Structure
Implementation

Segmentation
By 2020, 51% of urban population will be considered rich or higher (of that, 6% is considered affluent)
Don’t group consumers by tiers, instead use clusters
McKinsey divides China into 22 city clusters (92% of China’s urban gdp)
Market to several connected cities rather than tiers of cities
Brand halo - shared media across similar region

Impulsive buys are not common in China. (Only 28% vs 45% in UK). Chinese are smart consumers

Chinese consumers are very brand aware but not brand loyal. Just as they are price aware but not necessarily price sensitive

China has ~2000 tv stations
Tory Birch handbag product placement in Gossip Girl

Chinese marketing - big ideas take a backseat to cultural values and individual aspirations

Chinese luxury consumers
1. Nouveau rich - Want unique, prestige experiences. Dislikes being treated like a number. Not price sensitive
2. Gifting group - Buy in mass. Relatively not price sensitive
3. Middle class - Largest group. New luxury buyers, buy based on quality, price, brand.
Rise of affordable/accessible luxury

***Chinese youth who live at home (subsidized by family)can spend 80-150% of their income on consumer products*** (WTF I’m so jelly. This demographic is the future)

Sees growing interest in American brands and lifestyle. Ultra luxury European brand will continue to grow but may taper off. American image is new hot thing

Chinese travelers
-value the experience and service
-does not want to be seen as walking dollar sign
-looking to find their personal brand and sophistication

Chinese consumers value visual prestige. This is why they did not spend a lot to buy software. Nowadays SaaS model is gaining momentum.

For Chinese business, you should align your offering to government priorities. But China is very market driven so you cannot focus solely on appeasing government (such as building relationships with officials) but take your eyes off the market

The Chinese dream belongs to the Chinese people, but it is midwifed by the central government

Develop social media and digital strategy especially mobile

Main Point - DO NOT view the China market as a monolith. Look into McKinsey’s analysis and breakdown of China into 22 markets

Be patient. It is the Chinese virtue.

[Michal Szymanski · Rating 3 out of 5]

The first half of the book is great - the author deals with issues related to the formation of the consumer market over the centuries in the Middle Kingdom. Lots of interesting topics on the history of trade and economics, both in China and Europe. The book is a good introduction to the cultural nuances of the consumer market in China. The narrative is conducted like in a well-written history book.

However, the second half of the book is disappointing. A lot of clichés about business and commerce.

[Susan Evans · Rating 4 out of 5]

Great introduction to the Chinese consumer. Starting with some historical background to the new economy. A great education. Well written and easy to follow.

[Vanessa Princessa · Rating 4 out of 5]

I read this book thanks to Blinkist.

The key message in this book:

The Chinese market holds incredible potential for foreign firms, but the country exists in a context unlike many others. To succeed, foreign companies need to understand the motivations behind China’s growing mass of consumers. By studying the nuances of this group, your company can succeed in the Chinese market.

Suggested further reading:

Alibaba’s World by Porter Erisman

Alibaba’s World (2015) tells the story of Chinese e-commerce company Alibaba, which was founded in 1999. Alibaba’s World offers valuable insights into leadership and business acumen that can help you put your company on the path to success.

[Monzenn · Rating 3 out of 5]

High 3. Gotta admit that I was sold by the Wiley publisher sign at the bottom right there. Sure, quite a lot of example companies make up for a useful read at times. At many times, though, I felt like I'm reading an advertisement piece (granted, it was consistent with the title), a list of lists that I can get from other places (say the Internet), or an apology for the worst parts of the corporate experience ("if you sell something online in China, *expect it to be stolen*" with accompanying bold font). Maybe during good times, I might appreciate the numerous corporate examples and give a star back, but for now, it's three stars for me.

[cypher · Rating 3 out of 5]

good book, interesting, i'm always afraid with these of US propaganda against Asia, where US sees Asia as a threat since it has incredible growth and manipulates people's perspective, because they can, because it's hard to tell in the west.
i hope this did not happen here. the information was interesting, but i'd insist on saying that the US is probably more guilty of consumerism and building that culture than Asia, and that the US cares less about not damaging the climate than Asia ("climate crisis is a hoax" is US position, let's remember).

[Isaac Esseku · Rating 4 out of 5]

Fast, insightful read...great primer on China, the Chinese consumer, and early insights on how to sell in china

[Olga Bo · Rating 3 out of 5]

This book provides a glimpse of the Chinese Miracle. First half of the book covers historical and cultural background of China's economic success, the second parts gives an overview of consumers preferences, segmentation and lifestyle. Those who have experience working with China won't find many insights into chinese consumers behaviour.
Key points:
- Supply chain is the most important part of the business in China
- Third tier cities are new targets of global companies
- E-commerce is booming (Chinese consumers shop online 8.4 times a month, comparing to 5.2 in the US)

[Brian Zheng · Rating 4 out of 5]

A good book that covers different aspect of Chinese consumers with historical background introduction and plenty of case studies. One thing I strongly agree with the authors are "Chinese consumers are very brand-aware but not very brand-loyal, just as they are very price-aware but also, in many cases, not price- sensitive.". This is making Chinese almost the most unique and difficult group of consumer to tackle. The taste evolves so fast that very few companies can keep staying on the top.

[John · Rating 4 out of 5]

A good start to understand Chinese consumers

A book to remind your childhood if you were born in the 70s or 80s in China. A good read for westerners to understand where Chinese consumers came from. As the author emphasized, it's not a guidebook for your business in China, but if you don't want to be left out in the 21st century, you gotta read this book.