Download more than a dozen reports presented at the Nielsen China Forum.
Findings Disclose What Consumers Watch & Buy and the Key Success Strategies for Growth
More than 1,000 attendees across 420 media, fast-moving consumer goods, auto, financial services and retailing business sectors joined forces at the first-ever Nielsen China Forum where insights transformed into actionable strategies for how to win in China. “The China market is a massive global economic powerhouse offering tremendous growth opportunities like never before seen,” said Mitch Barns, President, The Nielsen Company, Greater China. “A population of 1.3 billion people where about half live in 570,000 rural villages represents enormous untapped potential.”
“The theme for our day is “Winning in China.” And what a prize it is to win in this market. So much of the world is still struggling with recession or slow growth, and that only increases China’s importance as the world’s most important growth market today and for the foreseeable future,” continued Mr. Barns. “But that doesn’t mean that growth is easy in China. The competitive intensity is high. So to win, we need to have the best understanding of the market and consumers. We need to execute with speed and excellence. And we must never stop learning.”
Nielsen experts along with government officials, influential economists and business leaders discussed go-to-market strategies vital to succeeding in the China market. From unlocking shoppers’ demand across the FMCG industry and the importance of innovation to driving growth to winning digital dollars in new media platforms, the Forum revealed compelling insights and new ideas into what Chinese consumers watch and buy.
- Unlock Shopper Demand: What drives consumer’s shopping choices and trip missions? How do you build a trustworthy brand? To succeed in China, FMCG marketers need to think about the vast population differently and balance resources accordingly. Marketers willing to invest in product innovation, understand the new marketplace, build a strong brand, and leverage China’s emerging markets are the ones who will succeed in the new demand-driven economy.
- Innovate in China: While innovation in China can pay off hugely as opportunities and untapped potential are everywhere, the cost of entry is high and long-term commitment is required. Once a new product is launched, the key differentiator between success and failure is tied to the quality of execution: scale (supply chain and distribution network), speed to market, and long-term financial commitment.
- Win Beyond Tier One Cities: Lower tier cities currently account for 87 percent of China’s population, but just 64 percent of retail sales. Consumers in these cities represent the next big opportunity for retailers and consumer goods manufacturers. But those manufacturers and retailers who think that they can simply apply the same formulas used in the upper tier cities risk missing these opportunities.
- Shift Automotive Business into High Gear: Over the past five years, China’s automotive industry was the only one in the world to achieve annual growth of more than 20 percent, and in 2010 alone, car sales will likely grow by 23 percent. The big story, however, is not the size of that growth—sales of cars will consistently increase for the next few years—but where that growth is coming from: China’s lower tier cities.
- Navigate the Changing Finance Industry: Chinese consumers express confidence in investments, but not all categories fare the same. In the third quarter 2010, the overall confidence index increased over the previous quarter, while the overall investment appetite index remained unchanged, indicating that the Chinese are feeling more confident about investment products as a group, but have not yet increased their willingness to buy such products.
- Discover the Winning Ways of Digital Dollars: Boasting the largest Internet community in the world with over 420 million online users, China’s online community has shown steady double-digit user growth rates over the past five years. As the online landscape continues to mature and evolve, keeping connected with online audiences is not only important, it is necessary for survival.
Understanding consumers from all tiers across China is just the beginning—turning this knowledge and insights into actionable go-to-market strategies to drive above average rates of growth is how companies will win.