Retailers in China will need to rethink their strategy in the country as consumer behaviour has started to change rapidly.
Chinese consumers are becoming similar to Western consumers, moving from purchases that satisfy basic needs to more emotionally driven, brand-loyal purchases that reflect individual tastes, a report by consulting firm McKinsey says.
The trend is creating a dichotomy in the Chinese economy. While some shoppers are becoming more "mainstream" and exhibiting Western-style shopping behaviour, the majority are still "mass" consumers who shop to satisfy basic needs. The resulting complexity will require different retail strategies across the country, and more skill and flexibility in retailers’ approach.
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(Source: Retail Week)