Four Keys To Understand The Chinese Consumer Buying Behavior
For the past years, Chinese consumers’ shopping habits have changed A LOT. Probably because of two things, one is that their incomes change over time and two, it is maybe because of new products and concepts that have entered the market. And despite the drastic changes that happened, these consumers will continue to have to change buying habits for the next few years. So if you are planning on entering the Chinese market, then read these tips to help you better understand your potential customers.
First and foremost, know the demographics
One thing and also the first thing to know in doing business is knowing who your customers are. And in China, the largest consumer segment is the millennials. With over 350 million in the count, any business that will know this group of consumers’ habits and preferences will surely have a higher chance to be successful.
Learn about their preferences when buying products
For the past years, Chinese consumers put pricing and function over anything else. They prefer buying products that they can maximize their use without having to spend a lot of money. But these days Chinese consumers lean more towards quality products, as they are willing to spend on products that are really high-quality and are considered the best.
They patronize both local and international brands
Consumers really did become picky and smart when it comes to buying products. Years ago, people would buy things based on their popularity, like some foreign brands that have established big names internationally. But today, they are more critical of what they buy and prefer products that really give value to their money.
They value word of mouth
Well, this doesn’t just apply to Chinese consumers, right? Things such as opinions and reviews of other consumers greatly influence their purchasing decisions. They see social recommendations as a better factor in buying products as it reveals both the good and bad sides of purchasing something, which traditional advertisements don’t. This is a sign for brands to pay attention to their reputation to maintain positive word of mouth.
Knowing your consumers is an essential part of doing business, as this will help you design marketing strategies that will fit your target consumer’s needs and preferences and have higher chances to achieve entrepreneurial success.