Are you looking into communicating efficiently with Chinese consumers? Are you worried that Chinese consumers are price sensitive? Read this summary of the Canada China Business Council event.
If you need a lawyer in China, contact us. We will have one of our lawyers contact you. They can help with business law and employment law.
We attended an event organized by the Canada China Business Council. The first speakers were Xin Huang, a partner at Hong Kong McKinsey. Caleb Balloch and Johnny Ho also spoke from Shanghai McKinsey. McKinsey is a consulting and analytics company in China.
Will The Chinese Market Recover Soon?
Xin Huang said that overall the country is maintaining low COVID-19 rates. The whole economy will likely recover soon. This means that there will be a return to consumer spending. It is important for companies to monitor consumer spending.
There has already been an increase in consumer spending in China of 10%. However, many Chinese consumers have changed their brand loyalty (86%) during COVID-19. It was not explained why this was.
About 80% of Chinese people have returned to their daily lives. In some industries, things have returned to pre-COVID levels in most of the companies product categories.
Consumers will only buy your products if they know about them. In large markets, market visibility is key. How is the right way to communicate with Chinese consumers? You should speak to marketing companies in your target market. Or, you can hire a business consulting firm like Shanghai McKinsey.
In China, if you don’t do business online, you miss out on a lot of revenue. Our attorneys can help you in doing business in China. Getting proper legal advice is key.
Chinese Consumers Price Sensitive
China is big, but the consumers are price sensitive. Getting the right pricing structure is extremely important. Working with a business consultant can help you with that. If your competitor out prices you, you are in big trouble.
The Chinese retail industry is now larger than the USA and is still growing. It’s slowed down a lot but it is still growing faster than most countries.
The cost of doing business online is getting higher and higher. The costs of consumer acquisition and retention costs have greatly increased. Many small companies are not able to afford to advertise online, leaving major opportunities for larger companies.
You cannot get more people online anymore. Chinese people are already online. They can’t spend any more time online than they already do.
How do we communicate with Chinese consumers? 70% of the Chinese consumers that spend time online are not reading website blogs. They spend most of their time on social media. This is a key way to reach Chinese consumers.
Chinese Consumers Behavior
Social media is a very effective way to find customers. But it will depend on your industry. For example, using social media as a law firm is not a good way to get clients.
People like to research their attorney and read legal blogs before reaching out to a law firm. How to attract their attention is key.
In China, a lot of people (70%) are doing cross-selling. They either look offline and then buy online, or they look online and buy offline. Very few people find something online and buy online. The numbers of people researching offline and buying offline are decreasing.
A lot of Chinese consumers like to do research on something in a store, and then buy online. This is why there are a lot of “experience stores” in China.
China Consumers Spending | Chinese Consumers Price Sensitive
Live streaming is quite unique to China. It sounds cool, but it’s just a younger more digital way of TV infomercials.
Live streaming is when an internet celebrity goes on Taobao (e-commerce) and they present over ten products. They try things on and answer questions from their fans.
People will ask the internet celebrities questions and the (KOLs) will answer some of the questions. It’s really easy to buy the products during live steaming. There is normally a button at the bottom of the live stream.
In conclusion, reach out to us if you are starting a business in China, or if you already have a business and need a lawyer. We can also refer you to business consultants that can help you reach Chinese people. Law firms can help you do things like registering your trademarks in China and create employment contracts.