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Three Consumer Trends in China You Need to Know
Article

Three Consumer Trends in China You Need to Know

China's "Consumption Upgrade" Might Not Mean What You Think It Means

Nan Qi Dao
iHeima, 2017
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Editorial Rating

6

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Recommendation

Gone are the days when Chinese consumers wanted either the cheapest or the flashiest. Today, shoppers are looking for products and services that represent quality, health and fulfillment. But most important, people will spend their money on brands that reflect their personal values. Nan Qi Dao provides insights into China’s changing consumer landscape, with examples of companies and entrepreneurs that successfully adapt. Despite the author’s efforts to tie these issues together under the umbrella concept of “consumption upgrade,” these disparate topics warrant individual attention and would be better served as separate blog posts. Nonetheless, getAbstract recommends this worthy read to entrepreneurs and global investors, especially those interested in Chinese e-commerce. 

Summary

As Chinese consumers increasingly shift to purchasing more expensive, higher quality products, many companies have become fixated on moving their businesses fully online to reach a larger customer base. However, this futuristic vision is misguided. Alibaba founder Jack Ma explains that “integration of offline platforms with online platforms is the key to generating new retail opportunities.” E-commerce giants are now focusing on the marriage of digital and physical shopping experiences. For example, Alibaba’s Hema supermarkets allow customers to shop and eat in-store or order online for delivery; JD.com has heavily invested in offline convenience stores; and both Xiaomi and NetEase have found success in operating offline home goods retail stores.

Of course, online and offline marketplaces have distinct sets of challenges. On one hand, the online market is cheaper to run and can generate cash flow quickly, but the low barrier to entry makes it difficult to carve out a niche market...

About the Author

Nan Qi Dao is a tech opinion leader and an op-ed columnist at iHeima, focusing on covering AI hardware and e-commerce.

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