Newsletter: October 2006  

Comparing Chinese and US Consumers 

China has emerged as the manufacturing powerhouse for the West. Its factory converts raw materials into products for the world. Its people represent a new consumer market for those goods.

For apparel alone, Chinese consumption could exceed that of the US by year 2030. Brands and retailers must realize that as far as marketing goes, East is definitely East. Understanding how the Chinese shop is key. 

The buying habits and preferences of the Chinese consumers were the focus of the recent survey. Data was collected through interviews with 7,000 people across China. 

Top ten key learning of the research: 

1. The Chinese retail apparel market is sophisticated with a tired structure of department chain, specialty and mass retailers, similar to those in the western market.
2. Chinese consumers enjoy shopping for clothing.
3. Shopping for clothing is a social pastime for the Chinese.
4. Friends and family are the most influential sources for clothing ideas.
5. The internet is not widely used channel for clothing shopping.
6. Credit cards have a small market share in China.
7. Brands is not key driver of purchase decisions.
8. Widespread piracy may be diluting equity in China.
9. Apparel ownership is less than that of the US.
10.  Keeping “in fashion” is important, but not the prime motivator for the majority of shoppers.