Consumers in Beijing are becoming increasingly likely to make ‘self-indulgent’ and ‘individualistic’ purchases, according to research from global consultancy McKinsey.
Consumers in Beijing are becoming increasingly likely to make ‘self-indulgent’ and ‘individualistic’ purchases, according to research from global consultancy McKinsey.
Cited by warc.com, the report suggests that a new type of consumer in China tends to earn over $16,000 and harbours very different spending habits from the majority of the population.
The report explains: “A fast-growing segment of the population is becoming more self-indulgent in purchasing activity, more individualistic in wants and needs, and more loyal to favourite brands – even while maintaining some of the traits for which Chinese consumers are renowned, such as spending lots of time in stores comparing products.”
These types of consumers will rapidly make up a large section of China’s shoppers, with McKinsey predicting they could make up 51 per cent of China’s urban population by 2020. Back in 2010, this sector only accounted for six per cent.
As a result, ecommerce stores may have to start selling more niche, individualistic products in order to coax an online payment from this new demographic.
Yuval Atsmon, co-author of the report, commented further to peopledaily.com.cn: “To maximise returns in China, companies will have to devote enormous energy and resources to reaching both the mass and new mainstream sides of the consumer dichotomy.”
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