consumer insight presentation_2006.ppt

The Source of Data A Conceptual Model of Consumer Product Choice The City Tree 43 million Chinese households can be defined as upper income families, which is above 30,000 RMB a year or above 2,500 RMB a month, based on our 2004 study. Assume there are 3 members in a family, then about 130 million Chinese fall into the upper income family category, which is 10% of the total population of China. These 130 million people arguably constitute the core of Chinese consumer market. The Size of the Consumer Market The income gaps have become bigger Upper Income Families: 1997 vs. 2004 Technology Owned and Used in the Home The fastest growing sectors over the 1997-2004 period are , in order:Medicine healthcare 156%Housing 138%Education entertainment 129%Transport and communications 126%Household durable goods 101%Services 94%Food 50%Clothing Foodwear 29% Consumer Expenditure by Industry: 1997-2004 (National) prefer to buy with Chinese brand names or PRC brand names 24 76 2004 19 81 1999 National 48 52 2004 1999 29 71 Top 10 Cities 2004 1999 55 45 36 64 Top 3 Cities Q41. To indicate the type of shopper you are, would you point to the position on this card you think best describes the way you shop for consumer durable or major appliances. prefer to buy products with foreign brand names Buy Chinese or foreign brands? 35 65 2004 26 74 1999 1997 25 75 19 - 29 2004 1999 1997 26 74 19 81 24 76 30 - 49 Q41. To indicate the type of shopper you are, would you point to the position on this card you think best describes the way you shop for consumer durable or major appliances. prefer to buy with Chinese brand names or PRC brand names prefer to buy products with foreign brand names Buy Chinese or foreign brands? (By age) We Still Prefer Foreign Products China Germany Britain Japan France Taiwan Korea USA Upper Income Families Total Urban Upper Income Families Total Urban Upper Income Families Total Urban Upper Income F