This McKinsey report “Understanding Chinese Consumers: The growth engine of the world” has been pinned to my desktop for the entire week. It’s 148 pages.
Here are some key takeaways.
- Digitization: B2C (and B2B) brands should go digital. Now. Start at page 119, where it becomes really interesting for ya digital workers.
- Mainland brands: China is decoupling from the US and becoming more domestically focused. Focus on localization – more.
- Rising competitive industry: the top 10% capture 90% of profits (vs. 70% in the of rest of world). Quality and healthy are key terms here.
- Consumers are racking up on age and wealth: 32% of global consumption comes from Chinese consumers. Again, they are looking for quality and health products and services.
- China’s optimism in its economic recovery is 50% vs 22% in the US. Aka there will be money spent.
Remember Li Zi Qi – the Chinese YouTube star with 11 million followers that just seems to live an easy life pulling potatoes and making mapo tofu her grandma? She pulled in an easy CNY100 mill/ $15 million through her third party operated online store.
Social commerce is a thing.