November 6, 2009

The Marketer’s POV – external trends in China

Posted in Marketing in China at 3:24 pm by Jennifer McDowell

The Chinese economy is still growing, according to Wal-Mart China’s CEO. McKinsey Quarterly interviews Ed Chan, who talks about the complexity of Chinese “consumer behavior”.

Watch the video here, and note the environmental factors that affect marketing in China:

  • social factors – “We have learned so much about the diversity of the customer base in China.” Different customer preferences and income level differences across regions, and between the ‘mega-cities’ and inland rural communities, greatly affect consumer purchases.
  • economic factors – Earlier this fall, there was a small slowdown of spending at Wal-Mart’s stores in some geographic ares in China. “There’s no doubt that China’s economy, given it’s reliance on export, has been affected to a certain degree. But…this economy is still growing at a pace that many other countries are somewhat jealous of.”
  • technological factors –  Sophisticated infrastructure developments in China (highway, air, railroad), combined with internet technology and new generation mobile phones…”the consumer technologies, the infrastructure, will all blend together to create another once-in-a-lifetime opportunity for companies that understand how to tap into it.”