Chinese shares have fallen nearly 30% after hitting a peak June 2 and it doesn’t appear that official efforts to prop up prices have helped much with stocks falling on Tuesday. It’s more important than ever to understand the Chinese consumer and identify areas of opportunities for marketers.
Recently, ProsperChina™ uncovered the merchandise categories in which Chinese consumers are planning to spend more and also some key behavioral characteristics in regards to online shopping and mobile usage. Analytics such as these are key for executives to navigate a volatile economic environment plagued by uncertain consumers.
According to the ProsperChina Consumer Spending Score, which represents consumers’ intended level of retail spending over the next 90 days for a particular category, Children’s Clothing, Women’s Casual Clothing and Shoes appear to be hotspots among Chinese Consumers. On the other hand, Women’s Dress Clothing, Electronics and Men’s Dress Clothing all had an index below 100, indicating consumers are planning to spend less in these areas.
Through agreements Alipay has made with companies such as Macy’s and Saks, Chinese consumers can now easily shop American retailers with confidence online. Online shopping has been a main channel of consumption in China, especially within the 18-54 demographic; 70% of Chinese purchase products online compared to 29% of Americans who do the same. Further, nearly half (48.4%) of Chinese consumers have a retailer app on their smartphone compared to 20% of U.S. consumers. Chinese consumers are largely influenced through information sharing and communication with retailers via their social media sites. More and more retailers are putting the mobile version link of their online stores via social media.