Strategies to Help CPG Companies Win in China—Infographic

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Accenture’s latest study reveals strategies that help accelerate growth for consumer packaged goods and retail companies in China. …

Accenture’s latest study reveals strategies that help accelerate growth for consumer packaged goods and retail companies in China.

For more information view us on http://www.accenture.com/ConsumerGoods

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  • 1. The Allure and Challenges of China's Changing Consumer Market Accenture China Consumer Survey Copyright © 2014 Accenture All rights reserved. Accenture reveals the new rules of China's consumer market, advising consumer packaged goods companies and retailers on how to leverage consumer insights and segmentation to develop successful consumer engagement and growth strategies in a changing market of one billion empowered urban consumers. Source: Accenture China Consumer Survey Developing Winning Strategies Invest in technology platforms to increase visibility and responsiveness. Build analytics capabilities to understand high-value consumer archetypes. Develop a consumer engagement blueprint to deliver personalized shopping experiences. Identify opportunities for unconventional growth. The rules are changing in the vast China consumer market, and the profit rate of consumer packaged goods companies and retailers continues to decline. Diversity of consumer preference and behavior is transforming the traditional market segments. Accenture applied advanced analytics to identify 8 high-value consumer archetypes. New Chinese consumer behaviors and preferences present consumer packaged goods companies and retailers with an opportunity to leverage digital channels to drive growth. A “me” culture is prevailing It is difficult to drive loyalty Life is digital Pragmatism still rules Profits are down A majority are willing to spend on products that reflect one’s identity. Two thirds are willing to try new brands/ products. Nearly three quarters are online daily. More than half often go to a physical store to see/try before buying an item online. EBITA of 540 of China’s public retail, non-durable consumer packaged goods and apparel companies is declining. Understanding Insights and Challenges 73% 52% 9% ’11 ’12 ’13 7% 4% 69%62% Higher income Lower incomeMiddle income Identifying Consumer Archetypes ¥ ¥ ¥ ¥ ¥¥¥ SALE SALE Young urban professionals (Yuppies) • High spending power • Product purchased should reflect status • High brand awareness Exclusive service buyers • High spending power • Preference for highly personalized service • Experienced in online shopping and social networks Fashion-forward consumers • High spending power • Price is a less important consideration • Preference for high-quality goods Conservative middle-income shoppers • High spending power; conventional spending practices • Prefer to shop in stores, not online • Greatly influenced by TV advertising Internet civilians • Emotional and impulse buyers • High buying intent; relatively low buying power • Enthusiasm for online shopping and social networks Price- sensitive families • Lack strong spending power • Value discounts and incentives • Experienced in online shopping Thrifty householders • General spending power, but cautious • Concerned about saving for family and future • Attracted by in-store promotions Aspirational wage earners • Lack strong spending power • Highly influenced by social networks and online adverts • Attracted to point redemption schemes ¥ Meet Your Urban Chinese Consumers ¥ $ ¥ ¥ ¥ ¥ LEARNINGS OPPORTUNITIES ACTIONS Understanding Insights & Challenges Identifying Consumer Archetypes Developing Winning Strategies ¥ ¥ ¥ ¥ LEARNINGS OPPORTUNITIES ACTIONS