Geographic Segmentation in China
Geographic Segmentation

Brand Drivers in China
Fig. 1: Brand drivers in China. Average values (red) and regional differences (yellow) are show. Source: McKinsey - 2008 Consumer Survey.

Brand Drivers in China

Fig. 1 depicts the major brand drivers in China. Values averaged over all Chinese provinces are indicated by the red bars. The yellow bar indicates the margin of difference between the Chinese South-west and the rest of China (e.g. "good quality" is even more dominant as a brand driver in the South-west, where its impact rises to 83%).
While the survey provides interesting results over regional differences in buying behavior in China (here with respect to the South-west), where the impact of product quality, attractive features and an appealing design differ significantly, it also provides qualitative information about consumer behavior in general.
Conclusion: A fashion company launching for example a new model of lady jeans might equip the trousers with more "bells and whistles" (glittering accessories, shinier belts, etc.)

Channel drivers in China
Fig. 2: Channel drivers in China. Average values (red) and regional differences (yellow) are show. Source: McKinsey - 2008 Consumer Survey.

Channel drivers in China

Among the major channel drivers the most significant regional differences are found when it comes to product assortment (wide variety of brands and products) and the convenience factor (short distance to the store, easy to get there).

Media habits in China
Fig. 3: Media habits in China. Average values (red) and regional differences (yellow) are show. Source: McKinsey - 2008 Consumer Survey.

Media habits in China

Fig. 3 depicts the major brand drivers in China. Values averaged over all Chinese provinces are indicated by the red bars. The yellow bar indicates the margin of difference between the Chinese South-west and the rest of China (e.g. viral marketing ("word of mouth") is even more dominant as a source of information in the South-west, where its impact rises to 43%, compared to only 37% in the rest of China). The impact of TV advertisement is much reduced in the South-west (only 19% vs. 29% in the rest of China - the negative sign is not shown).
While the survey provides interesting results over regional differences in buying behavior in China (here with respect to the South-west), where the impact of product quality, attractive features and an appealing design differ significantly, it also provides qualitative information about consumer behavior in general.

 

Conclusion

A fashion company launching for example, who plans to launch a new model of lady jeans might equip its trousers with more "bells and whistles" (glittering accessories, shinier belts, etc.) in the Sourth-west.
The company might develop a viral marketing campaign. Esp. fiancially less strong companies, who can't afford expensive TV advertisement, are favored in China's South-west, as TV is not as dominant as a source of information in the buying (adoption) process. Creativity for the creation of viral marketing campaigns becomes more important.

 

 
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