Trend report China7 consumer trends of urban China

Peter HeshofI use my trend insights to answer your marketing questions

Why a Trend report China ?As Trend watcher and marketing strategist I visit every year a city to inspire myself. Last year I visited New York. This year I visited Shanghai & Beijing, because China is modernizing at very high speed and will become the nr. 1 economy in the world. So I want to understand what drives and motivates the Chinese and what are their existing and future needs as a consumer?

I use my trend insights to answer marketing questions concerning brand positioning, marketing strategy and innovation. Since 2003 I work for companies such as Unilever, Sara Lee, Ahold, Achmea, Rabobank, Robeco, Ziggo and Eneco.

In this trend report I would like to share my observations of the consumer needs & trends in urban China (Shanghai & Beijing).

My observations are based on my experiences and many interviews.I would like to thank Chang, Ding, Gerard, Hua, Hugo, John, Joshua, Kang, Liberto, Maurits, Mei, Mari, Michael, Rogier, Victor, Xu, Youngmei, Zhang and Zheng for sharing their views.

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1. Existing economical context2. Existing consumer trends3. Rising consumer trends

4. Changing Zeitgeist

4 chapters

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1. Existing economical context2. Existing consumer trends3. Rising consumer trends

4. Changing Zeitgeist

4 chapters

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Need for stabilityThe CPC, Communist Party of China,

focus is on harmony and will only survive

if the 1.3 billion Chinese people

remain satisfied.

Existing economical context

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China First

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Peter Heshof 2011©

To avoid the Soviet Union scenario the CPC has realized that they have to adjust

the political policy to keep their 1.3 billion

inhabitants satisfied. They follow Darwin's rule; the survivor is

not the strongest but the one that adjusts

best to new situations. So continuously and

small political adjustments, are the key

driver of the survival of the CPC.

CPC gave room to the market, to private

business, to foreign companies and most importantly they joined the WTO in 2001.

This was the basis for enormous growth of

China in the last 10 years. Becoming the

factory and cash machine of the world.

China’s role in the world is based on an in-

ward looking policy to secure their needs. Credo: China first! 6

China’s focus on growth

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Peter Heshof 2011©

To keep the people satisfied8% economic growth is necessary.

China’s growth strategy:- Investment in infrastructure, property and

easing company loans

- Focus on export via efficiency and low

currency

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China’s growth risks

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The risk factors for sustainable growth:- Bubbles: housing market and

company loans

- Increasing inflation

- Increasing gap between poor and

very rich

- Corruption

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China’s rebalance

Peter Heshof 2011©

China should make a rebalance from an overinvestment in infrastructure and

property towards raising household income.

- Less dependency on export, more growth

from internal consumption.

- Creation of strong Chinese brands

of high quality.

- From Copy to more Added Value industry.

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Peter Heshof 2011©

The art of copying (repetition), low wages and

currency, has made China the biggest factory of

the world.

The Chinese educational system is also about

repetition. The one who repeats the best, the

answers learned, is the hero. But repetition is

based on the existing rules and truth. If you want

to create new views or insights you have to let

go of the existing views and choose a new path.

As Steve Jobs did at Apple, one of the

most admired brands in China.

If China wants to build a sustainable economy of

long term growth, it should Add Value to the

existing copy market. It needs entrepreneurs

who are able to think Out of the existing Chinese

copy box. But in an educational system focused

on repetition, this will be the biggest challenge

for China.

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China’s biggest challenge

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1. Existing economical context

2. Existing consumer trends3. Rising consumer trends

4. Changing Zeitgeist

4 chapters

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- Me, my family & I- Be the best

- …..- …..

4 Existing Consumer Trends

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In 1979 the 1-child program started in China.

Besides birth control it also had

an enormous effect on the social structure as it

created princes and princesses.

These only child's are treated like a prince or

princess. As the focal point of their parents they

are often spoiled.

On top of that many parents who work in cities,

leave the children at their village and see them

only once a year.

Besides the risk of getting spoiled, only children

grow up without brothers and sisters. So no

playing, no fights, no sharing and no social

learning as a kid.

This policy creates youngsters who consider

themselves the center of the world. This is

completely different from their parents’

upbringing. They were taught to be humble

and subordinate to the common goal and to their

family.

Me, my family & I

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Me, my family & I

Peter Heshof 2011©

Me & my family First.

The I is different from the western I

I = inner group = core family

The family puts its interest first.

Life is hard in China,

I care about myself and my family,

not about others.

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Peter Heshof 2011©

To differentiate myself from 1.3 billion

people I have to be better than the rest. Or at least my parents want me

to perform better.

Education is about repetition, not

about creativity.

Tiger-mums help you to be the best.

I have a need to perform and

to improve myself.

Be the best

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In China self development is not about to be yourself or self actualization.

In China self development is about being the best, the smartest of your group.

China’s culture is not like in the Apple

commercial Think Different. Where the crazy ones, the misfits, the rebels and the

troublemakers are glorified.

In China the one who fits best

to the community-standards is glorified.

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Be the best

1. Existing economical context2. Existing consumer trends3. Rising consumer trends

4. Changing Zeitgeist

4 chapters

Peter Heshof 2011© 17

Would you like to receive the complete Trend report, including:

- All 4 existing consumer trends- The 3 rising consumer trends

- The changing Zeitgeist in China

Go to my online shop: http://tinypay.me/~eiO5W8N

and order directly this beautiful Trend Report After payment you will receive the full digital pdf report.

Costs: 300 euro (including VAT)

The complete Trend report China

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Extra option: ask for my personal presentation of the China report, to get all the details.

Wilt u het complete China trend verhaal horen,middels een persoonlijke presentatie door mij

op uw locatie & het complete Trend report ontvangen?

Neem dan contact met mij op:peter@tobloom.nl

06-18552437

Het Complete Trend verhaal

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Do you need help to translate these trends to innovation or brand positioning?

Mail or call me, peter@tobloom.nl +31 6 18 55 24 37

www.tobloom.nl

Copyright© 2011 by Peter Heshof

All rights reserved

No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording or otherwise) without prior permission of Peter Heshof.

Requests for permission should be directed to peter@tobloom.nl