China’s economy is without a doubt one of the strongest in the world, powered by consumers who continuously evolve and adapt with the times and technology. In recent years, China continues to transition from an investment and export-led economy to a consumer-driven economy—and with the forecasted growth of income among Chinese consumers, it’s no wonder how China continues to dominate the global market.
Goldman Sachs recently conducted a survey that projected China’s income growth in the coming decade. More and more consumers will have an increase in spending power. The country’s citizens are now reliant on technology more than ever. Job optimism in the country is also on a high. All these factors contribute to the rise of a new China buyer demographic: technology-savvy, well-informed, affluent, and luxury-seeking.
These growing trends in China are set to make way for a stronger demographic: dubbed as “the China Supernova” by CEO Savio Chan, this emergence of a bigger demographic is a force that can dominate the new global economy.
A quick peek at this rising Chinese global demographic shows how their buying behavior has changed over time and how their spending power has increased. The numbers don’t lie: last year, the Chinese spent over $183 billion on luxury goods alone, buying almost half of the world’s supply. 3 million Chinese citizens traveled to the United States, spending a total of $26.9 billion, with every tourist spending almost $10,000 while in the US.
Technology has also become a backbone for the new China demographic. The increase in online shopping among Chinese consumers continues to skyrocket with each passing year. Brands engage with their customers using social media in an effort to build relationships and customer satisfaction. Transactions can be easily made using mobile apps and the Internet. This new breed of consumers know how to make the most of technology because they want convenience 24/7. In this light, it is important for brands to consistently develop new channels to address the needs of China’s stronger and bigger global demographic.
As more and more Chinese consumers embrace their spending power, it’s no surprise how their shopping habits, communication patterns, and channel preferences will change. Read more about the Chinese Supernova in a new paper by Savio Chan.
Written by Savio S. Chan