Decoding The Dragon: China
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The document discusses China's growing economic influence and diversity. It notes that China has the world's second largest economy, largest population at over 1.3 billion people, and is a major manufacturing and consumer market. While China is often portrayed as homogeneous, the document highlights its vast geographic, demographic, and economic diversity across its many cities and regions. It emphasizes that understanding Chinese consumers requires recognizing this diversity and their unique cultural customs.
Decoding The Dragon: China
- 1. DECODING THE DRAGON… BY KATHY JIANG
- 2. Politicians, Business Leaders, Economists, and Mass Media, are all talking about China… now even A-list Celebrities.
- 3. Met Ball GALA 2015 @ New York City a.k.a. the Superbowl of Fashion
- 7. China is BIG CHINA EUROPE CHINA = North America + South America + Australia + New Zealand + all Western Europe Land Area as big as Europe. 5,000 years’ non-stop history 20% world population
- 8. China is DIVERSE 1/5 TIME ZONE Official/ Geographically 1/248LAUNGUAGE / DIALETS 93%HAN 56 ethnic groups
- 9. CHINA IS A WORLD FACTORY
- 10. Not only do we produce but we consume
- 11. 2ndLargest Economy Germany + France + UK > World’s Biggest Consumer +7% @2014 No. 1 market for mobile car luxury shoes ……
- 12. 13 Mainland China 83.2% SOB Taiwan 7.7% SOBHong Kong 9.1% SOB Source: Global Sales, Strategy and Excellence, Business Development PROFIT CONTRIBUTION* SHARE: 40% NET SALES SHARE: 14% Greater China is No.2 Market for adidas group
- 13. FRANCHISE Every 2-3 days, 1 mono-brand adidas store opens in China 8,853 234 OWN RETAIL
- 15. OR LIKE THIS…
- 16. Yes, but neither of them represents China as a whole
- 17. FAST URBANIZATION Since 1995, 300Mpeople shifted into cities Russia population x 2
- 18. SHANGHAI 1990
- 19. SHANGHAI 2012
- 20. A Comparison Shared by Bill Gates on his blog… Source: http://www.gatesnotes.com/About-Bill-Gates/Concrete-in-China
- 21. CHINA 2011 - 2013 UNITED STATES 1901 - 2001 6.6 giga-tons 4.5 giga-tons VS. Cement Consumption: CHINA vs. US
- 22. 3 4 5 6 7 2 1 # OF CITIES CITY TIER AVG. # OF RESIDENTS 3 17.6M 18 6.6M 52 2.6M 159 1.1M 504 0.7M 676 0.5M 867 0.25M HIGH TIER LOW TIER 2,285 cities / 7 tiers
- 23. HIGH TIER CITIES Large cities + Higher Income Luxury & Vertical brands Shopping malls + Department stores Adidas: 51% BCS + 93% OCS LOW TIER CITIES Small Medium cities + Lower Income Local brand dominate & Value/Price driven Street level stores + State Owned shops Adidas: Another 1000+ cities to penetrate
- 24. CHINESE PEOPLE ARE HARD TO READ “ ”
- 27. Increasingly diverse across generations, geographies, income level, and lifestyles But we do share some commonalities.
- 28. Top Brand Lovers 44% vs. 16% in US 8% in Japan Source: McKinsey & Co. Reports
- 31. 33
- 32. Brand Hoppers 46% vs. 71% in US Source: McKinsey & Co. Reports
- 33. Overwhelmed by choices of brands – all within a short period of time
- 34. WOMEN’S ONLY Provide freshness through campaigns & retail concepts COLLECTIVE STORE
- 35. NIKELAB KICK LOUNGE WOMEN’S ONLY Provide freshness through campaigns & retail concepts
- 36. 60days-ST 89% 30days-ST 91% Celebrity Emulators 30days-ST: 35%, 60days-ST: 50%
- 37. Approval Seekers 28% vs. 49% in UK Source: McKinsey & Co. Reports
- 38. Shopping Addict
- 39. Shopping 24/7 Largest eCom market 650M = US Population x2online shoppers Dominant Online Retailer 300M customers + >
- 40. WORLD’S BIGGEST EVER ONLINE SHOPPING HOLIDAY! “SINGLE DAY” IN CHINA: 11.11 Buying presents for yourself to celebrate “being single”. Invented by alibaba in 2009
- 42. Premium Fresh GLocal eComSocial To win Chinese Consumers, focus on:
- 43. “A journey of thousand miles must begin with a single step. “ Lao Tzu
- 44. How to connect with Chinese people? Here are some tips…
- 45. HANDSHAKE NAMECARD SMALL TALK HEAD NODDING When you are at meetings with Chinese
- 46. When you are drinking the tea… Serve the tea The way to “thank you” Sign to refill the tea
- 47. When you are invited to a dinner… Don’t occupy the seat of host. Do leave the order to host. Never place your chopsticks straight up in your bowl. Never flip the fish. The most important custom: Footing the BILL Do lower the rim when clinking glasses Don’t unwrap the gifts before you leave
- 48. General reminders “MAYBE.” “We’ll See.” LUCKY NUMBER!Respect Authority“SAVING FACE”
- 49. THANK YOU!