Economic China
Changing of Chinese consumers
China economy has a significant growth recently, it attracts the luxury brands, and international retails and manufacturers get into China market. Understanding Chinese consumers' desired, their habits, and consumer trends are crucial to get a successful business in China and it is the way to realise the economy too. Most of the older consumers may value price over quality, but younger generations are willing to pay more on premium or high-end products. It could be divided Chinese consumers into three groups: older generation, middle-aged, and younger generation.
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Older generation: maintains traditional spending habits, more care on the price.
Middle- aged: the between in tradition and new trends. Concern on quality.
Younger consumers: more Westernised and enjoyed experienced rather than quality or price.​​​​​
Older Generation
For the older generation who is born before 1960, they grew up in a hard political and economy background, without general education. This denotes they are sensitive into quality of goods and price changing. ​
Middle- Aged
Under the increasing economic background, various companies like private and foreign invested have established their business in China, the middle-aged consumers earnest incomes and take more opportunity in their careers. For those who work in Government or large enterprises may earn higher incomes. These consumers are wealthy, and willing to spend on entertainment, travel, high quality and healthcare products.
Younger Consumers
Based on the one-child policy, parents are willing to spend money for fulfil their children's need. These young consumers spend most of their income on entertainment, high-tech electronics and prevalent products. They often shop online and fascinated on social media. Those who younger than this group (age under 20), is the most Westernised and open mind for getting knowledge for the new products. They have strong personality and usually use the Internet for making friends and following the fashion trends. Social media is important marketing strategy in this group.
Obviously, the wealthy middle-aged and young generation are the target consumers for The North Face. They are willing to spend on premium products, high technology and love travelling which are fit to the brand philosophy of professional and high-tech mountaineering and outdoor gear. It is time of the Chinese to explore and open-minded. In addition, the Chinese consumers are focusing on using the Internet, social media to gain their business and networking. Therefore, the digital and interact communication are crucial in China market.
"The two most profound changes our generation has been witness to is the advent of the Internet and the explosive growth of the Chinese economy."
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China Economy in 2016 by Profit Confidential
China Economy
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Although there was a slow recovery of the global economy since 2000, China’s economy has steady growth which attracting the attention from the international society.
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The rapidly economic growth has significantly increased Chinese living standards, and caused a larger middle class. Over a long period, it means more Chinese will enter the middle class, creating the influential role in social and economic markets.
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Combined with the global power, positive GDP, population size, well technology development and military investment, China are expected to be one of the most influential and has largest economy power country. Moreover, Asia is estimated that will exceed North America and Europe after 15 years.
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