Over the last few years, China’s wealth and power have continued to increase. With a population of over 1 Billion people, they have become one of the strongest and richest countries. They have become so rich that some of their cities (Shanghai has a GDP of 810 Billion, same GDP as the Philippines) have economies as big as countries. Here is a great infographic from Visual Capitalist showing China Cities GDP compared to countries click here.
So what does this mean for brands? It means brands have a new untapped market they can target. In fact, many luxury brands have already started tailoring to Chinese Shoppers in the UK. Not only have they started employing Chinese speaking employees, they have also started using Chinese Social Media to promote their brand to create awareness to the Chinese Community. If you are still not sure why you should market your brand to the Chinese market, here are 3 reasons explaining why you should.
1. An increase of Chinese Exchange Students and Tourist.
If you live in London, you will notice there has been an increase of Chinese exchange students and Tourists walking around the City. Here is a table showing the number of Chinese exchange students studying in London the last few years.
|United States of America||17,115||16,865||16,485|
|Hong Kong (Special Administrative Region)||16,745||16,215||14,725|
Source: Higher Education Statistical Release 242 (2015 – 2016) Table 9
Chinese exchange students ranked number 1 since 2013. In 2015-2016, there were 91,215 Chinese exchange students in the UK, that’s more than three times compared to Malaysian exchange student who came second. So what does this means for local brands? It means that they have a new target demographic they can promote their products to if they haven’t done so already.
2. Happiness Through Shopping.
Millward Brown, a market research firm in the states found that unlike the Brits and the Americans, the Chinese consumers find shopping as an enjoyable past time. They found that 68% of Chinese respondents that took part in their survey said they were ‘happy or overjoyed’ while shopping. On the other hand, only 41% of British respondents and 48% of Ameican respondents had the same response as the Chinese respondents. Millward Brown also found that Chinese shoppers were more engaged when it comes to understanding about products they had an interest in. For Fashion Retail Brands, this means that promoting their brands to the Chinese market could significantly boost their sales and increase brand loyalty with Chinese shoppers.
3. Wealthy Chinese Love To Splurge.
Since the economic crisis in America in 2008, the spending habits of Americans have changed. Unlike the Chinese economy, which has boomed over the last few years. As a result, Chinese High Net Worth Individuals (HNWI) are spending more money and becoming more globalised with their spending habits. In fact, in 2016, 30% of the global luxury goods sales was contributed by the Chinese.
So what does this mean for brands? Considering the fact that Chinese shoppers find more joy and happiness when shopping, brands and companies can take this as a good sign and consider the fact they have a new demographic they can target. However, marketing to the Chinese Market is not easy, there are a number of things that must be considered such as, culture difference, what platforms they use and their social behaviour. But if brands manage to successfully market to this new demographic, they can expect good growth in their business.
Not sure how to market your product to the Chinese Market? Do not worry, here at Hire Media Network, we can help you figure all that out. Contact us here and to find out more about how we can help you target a new demographic.