The new aspirations of China’s middle class (part 2 out of 4)
Chinese people are very much attracted by technologies and most urbans are frantic users of smartphones. China is now the number one e-commerce market in the world and, leveraging the power and simplicity of local platforms such as TaoBao, Tmall, WeChat, etc., its consumers are together with South Koreans the most advanced of all in terms of mobile purchases.
Digital allows middle class citizens to satisfy their quest for consumption experiences that are:
- instantaneous, via the real time dimension of internet coupled with the efficiency of parcel deliveries throughout the country,
- personalized, thanks to algorithms taking into account consumers profile and historical behavior to provide individualized offers,
- and shared, via the social dimension of internet and the consultation of peers’ opinion not only before but also during the act of purchase.
It brings the satisfaction of “shopping smart”, a high expectation among the middle class, and spreads across even the most daily tasks as shown by the success of the YiHaoDian website and application selling fresh food delivered within three hours.
Amongst the young, the quest for emotionally rich experiences goes primarily through digital and represents a key lever for brands. In secondary cities where a lot of companies have no presence nor distribution, digital provides individuals with an access to brand consumption which they can’t find in their physical environment, and brands with an opportunity to develop without investing massively into retail. Nowadays these secondary cities are the engine of the country’s growth. So the brands that are not yet on Tmall or other digital platforms relevant to their industry are not only missing the train of digital commerce but also the development of the economy into peripheral cities and the interior of the land: they are out of the game!
Article written by Christophe Jourdain, Ifop International Director.