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About the papery The paper shows how Chinese consumers are gradually

shifting from collectivists to individualism.

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Findings of the papery Chinese consumers and workers are demonstrating an

increasing desire to express their individuality a

trend that may just signal the emergence of a new megeneration

yWhile Chinese buyers are many, and incomes arerising, most citizens remain too poor to purchase what

they wanty Chinese consumers are becoming more sophisticated

and increasingly put quality before price

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CountryCountry--ofof--Origin IssuesOrigin Issues

Bi-national products assembled in using materials from Y.

Made in Mexico by a Japanese company.

Ethnocentrism:Assumption that the Chinese are muchsuperior, in culture and dont accept who are culturallydissimilar.

Match-Up Hypothesis:Japanese and Germantechnologies are superior & hence their products areconsidered superior.

Animosity: Chinese consumers have been found to holdanimosity towards Japanese products in general.

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Misconception Fact Lesson

Chinese consumers now have a

lot of money to spend.

Though incomes are rising,

most Chinese consumersremain too poor to purchase

what they want.

The market may not offer as

much potential as its sizeimplies. Avoid makinginvestment commitments until

you have solid evidence thatChinese not only want yourofferings but also have theresources to buy them.

All Chinese are benefitingequally from the rise in Chinasaverage income.

Some Chinese are faring betterthan others. And the better-offamong themsuch as affluenturban dwellersalready own

what they want most,includingTVs and mobile phones.

To seize opportunities in themore affluent market,emphasize repeat andreplacement purchases overfirst-time product acquisition.

And look more to word-of-mouth than company-

managed communication todrive sales.

The biggest markets amongChinese consumers are forbasic household products.

Chinese consumers demandfor merely functional products(vacuum cleaners, washingmachine, refrigerators) haspaled compared to a hunger for

stylish offerings that suit onestastes.

Whether youre sellingappliances or consumerelectronics, ensure that theseofferings provide as much styleappeal as performance

reliability.

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Employee

Engage

ment

y Each and every member knows their role theorganization.

y They are getting the basic requirements but because ofthe misconception as they are highly dedicated, theyare not getting more to remain engaged & motivated.

y 2004 survey says 68% of the employee dont feel

engaged & 20% of the employees are activelydisengaged.

y Companies have to keep this issue in consideration toimprove the productivity.

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Psychographic segmentationInnovators Mainly in the cities of Beijing,

Guangzhou, and Shanghai.

Thinkers & Believers Mainly older people who believes

strongly in the culture of China.Achievers They have the basic house hold things

and they aspire

Strivers Teenagers & young ones who hastremendous aspirations. They want toachieve a no. of things.

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Thank you