China is known as the biggest manufacturer in the world that exports all kinds of products around the globe. It is known for its commitment to deadlines, quick processing, strong supply chain, and cheap pricing.
In short, it is the economic power hub of the world, with access to basically all kinds of products and services at hand. Therefore, starting a business and winning the consumer market in China can be challenging.
However, it is not impossible. With keeping a few key factors in mind, you can succeed in the Chinese consumer market.
Keep these six strategies in mind when entering the Chinese market to make the most out of your new adventure.
Adapt to Local Culture and Language Preference
Chinese people are proud of their languages and rich culture. The current generation wants to further connect to their roots and spread their rich culture worldwide. China is the central hub of manufacturing and exporting goods globally and has its own set of rules.
To properly set up your business in China, it is essential to understand local rules and regulations, have a great relationship with local partners, and understand the Chinese consumer market.
In fact, 73% of the population considers shopping a leisure activity. It means that locals need something new and innovative to stay interested in the market.
Extra Tip: Translate your content and documents
Additionally, it is absolutely essential to remember that the consumers generally strongly prefer to purchase goods and services if they are able to read the information about it directly in their native language. This is especially true within overseas markets, where culture, language and local linguistic factors have a strong influence. By working with a globally recognized translation services agency, for example TS24 in London, you’ll be able to translate your documents and content precisely directly into your target market’s native language. This will consequently increase customer satisfaction and improve your international brand image.
Target the Young, Urban Population
In the past couple of years, young Chinese consumers have shown a great interest in culture-based, national brands. This trend is known as Guochao, which translates into “National Trend.” This trend is more prevalent among consumers between 19 to 25 years of age due to the pride in their growing National economy.
Since 11.84% of the Chinese population is between the ages of 20 to 29, it is ideal for targeting the younger population to boost your sales. Moreover, this age group spends a lot of money, especially women, making them dominant in the consumer market.
So, curate your product or service according to the younger population to get a quicker and better response in the consumer market. Before you launch your business, you can even conduct surveys regarding your product to know the reaction of the younger population in the country.
Quality Matters the Most
China is the biggest producer of goods and is trusted worldwide because of its high-quality material and quick deliveries. Therefore, the quality standards in China are pretty high. Despite the widespread belief that Chinese products don’t last long, they supply goods to the most renowned brands in the world.
Chinese consumers have a high regard for quality. This market is worth the extra effort as it can help your brand earn a considerable premium. Where most consumers will demand cheaper products, there will be a group of people willing to pay extra money for good quality.
The Gen Z population tends to overspend its budget for high-quality products. This demand will only see an increase as time goes by. With rising income in China, people want premium quality products to make their lives easier.
Choose Micro Targeting
China boasts a massive population, and your business cannot cater to everyone. There are many subcategories in the population according to their social class, education, preferences, gender, etc. Therefore, targeting a small group of people in the initial stage of your brand will get you more solid results. This strategy is known as “micro-targeting.”
This way, you can design your marketing campaigns, focusing on that specific subcategory. In addition, you can gather data about the different requirements of that group. This also applies to significant events like Coronavirus or other global changes as it massively influences the consumers’ demands.
The more data you will have, the more specific your product or service is. Identify the gap in that micro-market to catch the consumers’ interest.
Make the Best Use of the Internet and Social Media
As mentioned above, the biggest group of consumers in the Chinese market is the country’s young population. Therefore, advertising your product or service online is the best way to catch their attention.
According to research, there were 926.8 million social media users in China in 2020. However, since most Western social media apps are banned in China, you need to learn to use local social media platforms.
WeChat, Sina Weibo, QZone, Little Red Book, and Douyin are China’s top social media platforms. You can efficiently use them in your favour to market your brand to Chinese locals.
You can also build a Chinese-friendly website with the help of a reputable translation agency that specialises in either Mandarin (Simplified Chinese) or Cantonese (Traditional Chinese). As we have mentioned previously, implementing the services of a professional Mandarin or Cantonese translation provider, which is approved by the Institute of Translations, will ensure that locals fully understand your product or service description.
Research the Chinese Consumer Market
- According to a federal report, the sale of consumer goods in China rose to 39.96 trillion yuan, equal to $6.25 trillion, in 2021 (source).
- The same report also found that consumption of life services like vaccines and oral care has increased 20 times and 12 times respectively this year.
- The upper-middle-class consumer group plays the most significant role in China’s consumer market and is expected to grow to 60% by 2030.
- Young Chinese consumers have spent 770 billion Yuan, which equals $115 billion, on luxury goods in 2018.
- The female population of China has the largest share of the consumer market. Women make up to 75% of China’s consumer market and even buy products targeted at men.
Chinese customers can boost your business. Being the world’s largest population, you can expect continued business and higher ROI from this consumer market if you know how to win it.
With these easy tips, you can understand what group of people you must target and how your product or service should be.
Using the right strategies and efficient Cantonese and Mandarin translation services, you can quickly blend in with the Chinese consumer market and even win it in the long run.