|
Ian: One China, Many Markets
China changes fast. People often quote some article that was written in the New York Times a few years back claiming that a year in China is equivalent to 4 years in the US. I haven't seen this article, but the pace of development here seems to lend some credibility to the argument, even if it's merely anecdotal.
The rapid rate of change is especially challenging to forecast and adjust to for the retail sector. Not only are the physical questions challenging, such as new store locations and product expansion plans, but also attempts to adapt to changes in consumer attitudes and brand preferences have proven difficult.
To further complicate things, this morning at a breakfast hosted by the Economist Intelligence Unit, PT Black, a partner at Jigsaw International, spoke about how we are also witnessing a fundamental shift in how Chinese consumers view themselves. Historically, a global brand would attempt to localize on at the country level, but future success in China will come from taking this another step and having a regionally specific campaign.
PT went on to make the point that one of the most recent changes consumer behavior is the increase in regional confidence. People have pride in the region in which they live, frequently respond to their local celebrities more than the national pop-stars, and are starting to have fun laughing at themselves and the idiosyncrasies of their home region. This is not an argument for regionalism over nationalism, but just an observation that major brands need to consider regional marketing campaigns in their national strategies.
|
Ian runs operations and research.
