CHINA Hinterland Consumers English ESC
The purpose of this PPT presentation is to highlight a category of consumer which contribute to the growth of the consumption in China and whcih is unknowed by many compagnies : The Aspirants".
[...] Number of Aspirants who live in Small cities ( 135 Millions) are equal to the total population of 1st and 2nd Tier cities ( 137 Millions) Inside the Small Towns, Marketers don't know that there is an exciting SURPRISE : We have 3 segments in the Small Towns : The Aspirants want to make purchases more luxuary than the alimentary's needs with equipments, luxuary tools, electronic + informatic = BIG POTENTIAL 2 important categories of Well-off Consumers 55% have 18 to 34 years old / opposed to of the Poorest segment. 1/3 have completed 2 years of college = Educated + Attracted by the brand + research of Quality + Entairtnment but they are knowledge customers = Impervious to the promotions, the sellers aren't considered as trustworthy without proofs. Only 80% of Aspirants prefer the Stability versus Excitement and of the People in 1nd-Tier cities) + Less interested in Family Happiness + Less Listening of the older people = Individual consumption + hedonism = Good for Business. [...]
[...] Marketing to China's hinterland : The Emergency of the Aspirants by Nicolas TACON China : An attractive country for the Companies : The Largest country of the World, with millions of citizen. It represents more than 1/5 of the World's population. 2nd powerful economy just after USA and before Japan and member of the OMC ( Free Trade with low taxes which allows to increase the sharing with others countries). Growth of the GDP of 10% in 2009-2010. [...]
[...] The Global companies have concentred their activities only in the Big Towns because there are sure to meet customers which have money to spend but there absolutely give up the Small Towns . Global Companies have focused their developments on Big Towns : Activities only concentrated on China's Three largest cities as Beijing, Shanghai, and Guangzhou = 29 millions people = 13% of the Total Incomes of the country. Fortunately Multionationals begin to extend their activities in the 2nd and 3rd –Tier cities and not only the beachheads. [...]
[...] The Offer of the companies aren't satisfying the Need of the Aspirants : Propotion of customers that would buy a good but who finally don't realize the purchase is HIGHER than the 1nd and 2nd – Tier cities people because ( 41% resign to buy a microwave compared with a rate of resignation of 24% for the 1st-Tier cities and 30% for 2nd-Tier cities) BECAUSE OF THE HIGH LEVEL OF PRICE DUE TO THE COST OF THE DISTRIBUTION BUT they accept to pay a high level of price if the companies have an elitist and luxuary image for special occasion ( Wedding) or people as Rich Businessmen ( Distillery Swellfun in English which have an Ansian name in the Chinese Market because of the Chinese People have the sens of patriotism and support the local economy). The companies which adapt their supply chain will succeed: As the Aspirants must their children have a High level of education and are ready to keep the small towns for big Towns = PURPOSE to offer remote-learning products + Marketing messages for Educational advancement. + DEVELOP a large network of distribution as Tawainese Tinguy wich offer noodles with low-cost recipe thanks to 361 sales Offices with 4600 wholesalers + retailers. [...]
[...] BUT Few companies have developed their activities with the small cities and counties « The China's hinterland ». We will demonstrate that this resignation is a BIG mistake for the Business thanks to Mc Kinsey study. Small cities = 1/3 of the population of the country who would have more stores and a wide range of products with an Average Income of 260 $ /month which approach the level of Income of the 3rd-Tier cities (295 and 2nd Tier cities ( 340 the Total Incomes of this small cities are 50% higher than the 1nd and 2nd Tier cities combined = of Incomes growth by year in comparison with Big Cities = per year. [...]
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