American Consumer Products Are Hot Among China's Chuppies

By: Glenna Stewart

Editor's Note:  This post was written by Glenna Stewart, paralegal extraordinaire at my law firm.  Glenna graduated Magna Cum Laude from The George Washington University with a degree in International Affairs.  She lived in Korea for one year and speaks Korean.  She is currently studying Chinese as preparation for her Ph.D. studies in China Anthropology.  She took on this post because of its anthropological aspects.

Want to know what consumer trends are all the rage this year in China?  Ask UPS. Yes, that UPS, the package delivery company.  UPS recently published its second annual survey [slow download] of 1,2000 middle-class Chinese consumers in six different cities:  Shanghai, Beijing, Wuhan, Guangzhou, Chengdu and Shenyang.  UPS commissioned the survey to help American companies develop a sharper marketing edge in the world's fastest growing market.  Their survey asserts that Chinese urban consumers, or "Chuppies," have myriad shopping preferences depending on their age, gender and location.  But the bottom line is simple:  They want quality American products.

So what are some of the trends?  No surprise here, young people in China are more open to buying American goods than are the older generations.  Of particular interest to twenty-somethings with disposable cash are DVDs, CDs, non-fiction books and consumer electronics.  Those between the ages of 50-59 fancy digital cameras and televisions.  The most sought-after American products across the spectrum of surveyed consumers were:

• Home appliances
• Consumer electronics
• Health care products/pharmaceuticals
• Beauty products
• Apparel/fashion accessories
• Movies, music & books

Dividing the surveyed population along gender lines, it was interesting to learn that female consumers are primarily interested in beauty products and, go figure, American gourmet food.  It seems like an oxymoron to me, but the survey does not elaborate on its definition of 'gourmet.'  Male consumers desire tobacco products, alcoholic beverages and athletic equipment.  Hopefully they don't intend to use those products simultaneously.

The most interesting data drawn from the survey, however, were the regional difference in consumer preferences and the perceived prestige that accompanies them.  In Beijing, the most desired home appliance is a microwave, whereas in Wuhan and Shenyang, it is a refrigerator.  Consumers in Chengdu, China's fifth-largest city, want to buy laptops, which are seen as a major status symbol.  Shoppers in Shanghai crave video/digital recording systems and fashion goods.  What accounts for these differences?  UPS does not say, but it would make for an interesting follow-up study: regional consumer preferences and their influencing factors. 

Thirty-seven percent of the consumers surveyed say they favor blue packaging for American products.  That is almost double the next color of choice, white, which came in with only 19% of the vote.  American themed package icons, such as the American flag or the Statue of Liberty are also quite popular; Chinese consumers like the authentication they seem to afford, especially on consumer electronic products.

Perhaps the most important lesson to learn from UPS's 101 page report is that China's consumer market is growing increasingly more sophisticated and diverse.  The UPS press release accompanying the survey notes that, "The survey highlights the need for small-to-mid-sized businesses to be prepared and focused on exactly what it is they want to accomplish by entering China"  and that as of 2004, ninety percent of all US exporters to China were small- to medium-sized enterprises. 

In addition to the survey's findings, the UPS website provides supplementary information about Chinese credit card use, China internet shopping habits, US-China export statistics, marketing in China, and other links to resources and tips for doing business in China.

For those interested in reading more on this survey and on its repercussions on marketing to Chinese consumers, I recommend the following:

1.  "Selling to the Chinese Market," on the Small Business Trends Blog;

2.  "Marketing to Chuppies," on the Corante Blog;

3.  "Meet the Chuppies," on the On The Turning Away Blog;

4.  "DM Into China on 'Tip of the Iceberg'," on the DM News Site.