When power shifted east, the west was clueless. From backwater to economic barometer, China’s attitudes may be the perfect feng shui for the recession.
The Publicis Groupe recently announced the results of a study covering of Beijing, Shanghai, Guangzhou, Hangzhou and Qingdao; as well as Taiwan and Hong Kong. Called ‘A Good Life on Good Ground’, the survey was run from December 2008 to March 2009 and produced numbers from online forums, blogs and social network sites. The survey yielded both quantitative and qualitative numbers from 1,500 consumers, on 20 product categories from staple commodities, luxury goods, cosmetics, entertainment, travel, electronics, financial services, premium goods, etc.
Data identified four major shopper types:
1. Business as Usual High-end Consumers – not too concerned with the crises, whose shopping habits have not been affected, continuing to patronize high-end products.
2. Cautious Regulars – consumers in limbo, patronizing everyday basics, but hesitant with high-end products
3. Ultimate Cutters – drastically affected shopping behaviors, with significant cut-backs.
4. Ultimate Indulgers – indulging in small but high-end gratification purchases, shopping based on opportunity.
Defining personal financial confidence is crucial to the survey: How consumers view stability of household income, employment, and standard of living. The numbers-intensive, area-extensive survey points that personal financial confidence does not go hand-in-hand with personal financial assets or economic indicators.
Marketers are convinced action must go beyond weathering the recession. As the global economic compass, Chinese consumers are learning hard lessons they should remember long-term – lessons on the downturn’s unique background and swift global sweep, and poor product regulations.
It is evident that Chinese consumers desire to continue with the Good Life. But the downturn has revitalized values that were previously sidelined: financial prudence, family and community, and a modest approach to consumption. Such values have regained relevance as the Good Grounds for financial security.
