The Allure and Challenges of China'sChanging Consumer Market

Accenture China Consumer Survey

Copyright © 2014 Accenture All rights reserved.

Accenture reveals the new rules of China's consumer market, advising consumer packaged goods companies and retailers on how to leverage consumer insights and segmentation to develop successful consumer engagement and growth strategies in a changing market of one billion empowered urban consumers.

Source: Accenture China Consumer Survey

Developing Winning Strategies

Invest in technology platforms to increase

visibility and responsiveness.

Build analytics capabilities to understand high-value

consumer archetypes.

Develop a consumer engagement blueprint to deliver personalized shopping experiences.

Identify opportunities for unconventional

growth.

The rules are changing in the vast China consumer market, and the profit rate of consumer packaged goods companies

and retailers continues to decline.

Diversity of consumer preference and behavior is transforming the traditional market segments. Accenture applied advanced analytics to identify 8 high-value consumer archetypes.

New Chinese consumer behaviors and preferences present consumer packaged goods companies and retailers with an opportunity to leverage digital channels to drive growth.

A “me” cultureis prevailing

It is difficult to drive loyalty

Life isdigital

Pragmatismstill rules

Profitsare down

A majority are willing to spend on

products that reflect one’s

identity.

Two thirdsare willing to

try new brands/products.

Nearly three quarters are online daily.

More than half often go to a physical store

to see/try before buying an item

online.

EBITA of 540 of China’s public retail,

non-durable consumer packaged goods and apparel companies is

declining.

Understanding Insights and Challenges

73% 52%

9%

’11 ’12 ’13

7%

4%

69%62%

Higher income Lower incomeMiddle income

Identifying Consumer Archetypes

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Young urban professionals (Yuppies)• High spending power• Product purchased should reflect status• High brand awareness

Exclusive service buyers• High spending power• Preference for highly personalized service• Experienced in online shopping and social networks

Fashion-forward consumers• High spending power• Price is a less important consideration• Preference for high-quality goods

Conservative middle-income shoppers• High spending power; conventional

spending practices • Prefer to shop in stores, not online• Greatly influenced by TV advertising

Internet civilians• Emotional and impulse buyers• High buying intent; relatively

low buying power• Enthusiasm for online

shopping and social networks

Price-sensitivefamilies• Lack strong

spending power• Value discounts and incentives• Experienced in online shopping

Thrifty householders• General spending power, but cautious• Concerned about saving for family and future• Attracted by in-store promotions

Aspirational wage earners• Lack strong spending power• Highly influenced by social networks

and online adverts• Attracted to point redemption schemes

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Meet Your UrbanChinese

Consumers

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LEARNINGS OPPORTUNITIES ACTIONS

Understanding Insights & Challenges Identifying Consumer Archetypes Developing Winning Strategies

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