Brands need to localise to China’s cities

It’s estimated China’s middle class will be 40% of the population by 2030, but their outlook on life and behaviour as consumers are very much shaped by the particular urban environment they inhabit, research suggests.

A study* (in Chinese) by the Boston Consulting Group (BCG), reported by Jing Daily, highlights significant differences between those living in “emergent” cities focused on information technology and advanced biomedicine, versus “traditional” industrial cities, dominated by sectors such as petroleum, steel, and manufacturing. 

What are the differences? 

• Emergent: A city like Shenzhen is characterised by rapid technological change and fast-paced lifestyles. Consumers value efficiency and immersive experiences; they exhibit a strong affinity for change and self-expression. 
• Traditional: A slower pace of life is evident in cities like Qingdao and Kunming. People there prefer rituals and familiarity; they’re drawn to the concepts of “stability, belonging and balance”.

What it means for brands 

• Foreign brands, especially, will need to take note of this duality and develop more targeted campaigns: greater localisation will become important.
• Marketers should also understand that perceptions of value are not generally the same across the two types of city. Traditional cities exhibit much more conservative consumer behaviour, while emergent ones are more open to experimentation.

* The study included qualitative research on typical urban middle-class consumers aged 18 to 50 in Chinese cities with populations exceeding five million. Respondents were drawn from across three generations; monthly disposable family incomes ranged from $1,325 to $4,130 (9,600 to 29,900 RMB).

Sourced from Jing Daily