McKinsey report: China's emerging consumers are more emotional

BEIJING, September 25 (Reuters)-China's emerging consumer groups are more emotional than previous generations of consumers, and companies have to switch http://www.aliyun.com/zixun/aggregation/12474.html, the McKinsey report said in Tuesday. > Marketing strategies to keep them in sync.

By 2020, China's mainstream consumer population of more than 106,000 yuan will reach 400 million, replacing the relatively modest purchasing power of former generations of consumers who still pay attention to basic necessities, which are more self-indulgent, personal and brand loyal.

By 2020, McKinsey researchers predict, these affluent consumers will account for 51% of the urban population, far more than 2010 years of 6%, who are more emotional than the previous generation, and brand awareness will exceed the current mass market consumers.

"Companies will have to act quickly to cater to them with a ' blunt ' brand of consumer psychological appeal," the report said. The report surveyed 10,000 people in 44 cities.

China's current mass market consumers are defined as household income of 3.7 to 106,000 yuan, which accounts for more than four-fifths of China's total population, according to McKinsey.

China's younger generation of consumers may be closer to the consumer characteristics of developed countries, the report said. Among China's emerging mainstream consumer groups, 41% of young consumers say they "will spend a high price on the best products", compared with 31% of older consumers.

Chinese consumers, known for their savings and reluctance to use credit cards, are beginning to focus on foreign luxury brands.

By 2020, China's urban population, which buys private cars and a few luxuries, will expand six times times, accounting for about 57% of the population, according to the McKinsey report.

"The younger the more affluent consumers are, the more likely they are to favour foreign brands, which is good news for global companies," the report said.

SOURCE: Reuters China