Home Sign in Research report Data Center Industry News Custom Research About us
Research report:                          Automotive  |  Electronics  |  Mechanical&Automation  |  New Energy  |  Medical  |  Advanced Materials  |  Building Products  |  Transportation  |  Communication  |  Chemical  |  Finance  |  IT Industry  |  Food  |  Home Appliances  |  Forestry  |  Agriculture  |  Textile  |  Culture Industry  |  Consumer goods  |  Others  |
 Home > Industry News > Consumer goods > Text
Digital revolution drives China's retail, survey finds
Author:Sino-report    Source:China Daily    Number of clicks :     Update time:2011-06-14 13:48
Sino-report News Center Jun 2011

SHANGHAI - Chinese companies appear to be taking much more aggressive steps than their foreign counterparts to embrace the Internet as a sales channel, according to a recent survey.
China will become the world's second-largest consumer market by 2015, not far behind the United States, with enough purchasing power to buy 14 percent of the world's products, up from 5 percent now, according to research co-conducted by the American Chamber of Commerce in Shanghai (AmCham Shanghai) and Booz & Company, a leading global management consulting firm.
"More than 80 percent of US companies in China are here to serve the Chinese market. The emerging Chinese consumer is a key factor driving that trend," said Brenda Foster, president of AmCham Shanghai.
While multinational corporations (MNCs) overwhelmingly view building brand loyalty as the cornerstone to success in this fast-growing economy, Chinese enterprises consistently identify information technology (IT) as the main factor affecting consumer behavior.
A total of 135 companies with extensive sales operations in China were surveyed in April and May. Seventy percent were Western MNCs, 25 percent Chinese mainland companies, and the remainder were from Hong Kong, Taiwan, and the other Asian economies.
Multinationals and Chinese companies are competing intensely, but they take different approaches to securing their market position, said JoAnne S. Bessler, a partner at Booz & Company.
Ken Newell, president of China Beverages of PepsiCo (China) Ltd, noticed polarization in this regard. "I think multinationals who are based here are catching up with this trend a lot quicker (than those not in China), because Chinese consumers are going straight to the digital revolution far quicker than anyone else," he told China Daily.
Chinese respondents overwhelmingly considered IT a dominant force in shaping consumer behavior, with more than 90 percent expecting it would influence 20- to 40-year-olds.
According to the report, most respondents considered shopping on the Internet and cell phones, as well as through gaming and social networking sites, as an important means of influencing the mindset of the emerging consumer class.
To address this rising tendency, 93 percent of Chinese respondents said they are already or will soon be involved in e-commerce. By comparison, 41 percent of their foreign competitors said they have not yet implemented an online shopping strategy, or have no plan to do so.
More than twice as many Chinese companies as MNCs reported that at least 11 percent of their revenue comes from technology-enabled transactions.
MNCs' seemingly less-aggressive stance in digital marketing can be partially attributed to the need for fast-cycle, localized approaches to succeed in the Chinese digital marketplace.
Many multinationals have to coordinate and link closely with their global e-commerce strategy and have less freedom to act locally and rapidly, said Andrew Cainey, managing director of Booz & Company, Greater China.
Meanwhile, most MNCs said the dominant trend is a change in consumer expectations buoyed by an increase in external exposure through travel abroad or overseas experience.


Order Online
Contact Us
Tel: 400-988-9999
Phone :+8615313587056
Online Consultation
Skype: Please Please
Latest Reports
[Consumer goods] Tourism industry opening on agenda
[Consumer goods] Luxury brands eye younger customers
[Consumer goods] New retail to give growth fresh boost
[Consumer goods] Luxury firms diversifying into perfumes
[Consumer goods] Total Retail Sales of Consumer Goods in May 2018
[Consumer goods] Global sheep milk powder market revenue is expected to reach 144.45 million USD by 2025
[Consumer goods] Increasing popularity of convenience products in emerging economies including China, India, and Mexic
[Consumer goods] Water & wastewater treatment equipment market demand will grow owing to its significant usage in
Popular reports
Total Retail Sales of Consumer Goods in May 2018
Industry Data
China opens market to Kenya's agricultural products
China's publishing industry booming over past 40 years
Industrial Production Operation in July 2018
Total Retail Sales of Consumer Goods in July 2018
National Real Estate Development and Sales in the First Seven Months of 2018
NSDP/SDDS for the People's Republic of China
Market Price of Important Means of Production in Circulation, July 01-10, 2018
In the first five months of 2018, the profits made by industrial enterprises above the designated siz
Purchasing Managers Index for June 2018
Market Price of Important Means of Production in Circulation, June 21-30, 2018
In global EV battery shipments during Jan - Apr 2018, LG Chem and Samsung SDI ranked 4th and 6th
Based on Jan - Apr shipment record, Kia Motors Remain on Top 10 in Global PHEV Power Brands Ranking
Consumer Prices for May 2018
Producer Prices for the Industrial Sector for May 2018
Industrial Production Operation in May 2018
Investment in Fixed Assets for the First Five Months of 2018
National Real Estate Development and Sales in the First Five months of 2018
Producer Prices for the Industrial Sector for April 2018
Stable Performance for the National Economy in April
Total Retail Sales of Consumer Goods in April 2018
Industrial Production Operation in April 2018
National Real Estate Development and Sales in the First four months of 2018
Sales Prices of Residential Buildings in 70 Medium and Large-sized Cities in April 2018
Industrial Profits Increased in the First Four Months of 2018
Industry News
Iron and steel sector gains strength
China’s wines take center stage
Machinery manufacturing fair boosts Sino-Russian ties
Medical device manufacturers display their latest technology
Soybean farmers store crops amid hopes of higher prices
Tourism industry opening on agenda
Tech competition eases startups' access to China market
China's excavator sales grow 44.9% in October
China's solid waste imports continue to slump on tightened ban
Delivery orders jump 25.12% to 1.35b on Singles Day
Related Links
New retail to give growth fresh boost
Luxury firms diversifying into perfumes
Total Retail Sales of Consumer Goods in May 2018
CCFA released 2010 China Top 100 Chain Retailers
China May Day holiday retail sales up
Metro chief plans to open more stores In China

Sitemap       |       Join Us      |       Customer Service       |       About Sino-report
Copyright © 2011-2025 Sino-report Consult Inc.
No.18 Zhichun Road, Haidian District. Beijing 100089.China
Information and data contained in this site is for reference only pursuant to operate your own risk