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DECODING THE DRAGON…
BY KATHY JIANG
Politicians, Business Leaders,
Economists, and Mass Media,
are all talking about China…
now even A-list Celebrities.
Met Ball GALA 2015
@ New York City
a.k.a. the Superbowl of Fashion
JIANG
WEI
PERCEPTIONS OF CHINA
THE CHINESE EAT
EVERYTHING.
China is BIG
CHINA
EUROPE
CHINA
= North America
+ South America
+ Australia + New Zealand
+ all Western Europe
Land Area as big as Europe.
5,000 years’ non-stop history
20% world population
China is DIVERSE 1/5
TIME ZONE
Official/
Geographically 1/248LAUNGUAGE / DIALETS
93%HAN
56 ethnic groups
CHINA IS
A WORLD FACTORY
Not only do we produce
but we consume
2ndLargest
Economy
Germany + France + UK
>
World’s Biggest Consumer
+7% @2014
No. 1 market for
mobile car luxury shoes
……
13
Mainland China
83.2% SOB
Taiwan
7.7% SOBHong Kong
9.1% SOB
Source: Global Sales, Strategy and Excellence, Business Development
PROFIT CONTRIBUTION*
SHARE:
40%
NET SALES SHARE:
14%
Greater China is No.2 Market for adidas group
FRANCHISE
Every 2-3 days, 1 mono-brand adidas store opens in China
8,853
234
OWN RETAIL
CHINA
LOOKS LIKE
THIS…
OR
LIKE THIS…
Yes, but neither of them represents China as a whole
FAST
URBANIZATION
Since 1995,
300Mpeople shifted into cities
Russia population x 2
SHANGHAI 1990
SHANGHAI 2012
A Comparison Shared by Bill Gates on his blog…
Source: http://www.gatesnotes.com/About-Bill-Gates/Concrete-in-China
CHINA
2011 - 2013
UNITED STATES
1901 - 2001
6.6 giga-tons 4.5 giga-tons
VS.
Cement Consumption: CHINA vs. US
3
4
5
6
7
2
1
# OF CITIES CITY TIER
AVG. # OF
RESIDENTS
3 17.6M
18 6.6M
52 2.6M
159 1.1M
504 0.7M
676 0.5M
867 0.25M
HIGH
TIER
LOW
TIER
2,285 cities / 7 tiers
HIGH TIER CITIES
 Large cities + Higher Income
 Luxury & Vertical brands
 Shopping malls + Department stores
Adidas: 51% BCS + 93% OCS
LOW TIER CITIES
 Small Medium cities + Lower Income
 Local brand dominate & Value/Price driven
 Street level stores + State Owned shops
Adidas: Another 1000+ cities to penetrate
CHINESE PEOPLE
ARE
HARD TO READ
“
”
Confrontation
Lifestyle Dining
Expression
Chinese
Consumers
Increasingly diverse
across
generations,
geographies,
income level,
and lifestyles
But we do share some commonalities.
Top Brand Lovers
44%
vs. 16% in US
8% in Japan
Source: McKinsey & Co. Reports
Premium
Retail Presentation
Premium
Retail Presentation
33
Brand Hoppers
46%
vs. 71% in US
Source: McKinsey & Co. Reports
Overwhelmed by choices of brands
– all within a short period of time
WOMEN’S ONLY
Provide freshness through campaigns & retail concepts
COLLECTIVE STORE
NIKELAB KICK LOUNGE WOMEN’S ONLY
Provide freshness through campaigns & retail concepts
60days-ST 89% 30days-ST 91%
Celebrity Emulators
30days-ST: 35%, 60days-ST: 50%
Approval Seekers
28%
vs. 49% in UK
Source: McKinsey & Co. Reports
Shopping Addict
Shopping 24/7
Largest eCom market
650M = US Population x2online
shoppers
Dominant Online Retailer
300M customers
+
>
WORLD’S BIGGEST EVER
ONLINE SHOPPING HOLIDAY!
“SINGLE DAY” IN CHINA: 11.11
Buying presents for yourself to
celebrate “being single”.
Invented by alibaba in 2009
8billion
340,000
In 1st min
25%
aChina
25m
aGermany
42m
@Single day @2014
Premium Fresh GLocal eComSocial
To win Chinese Consumers, focus on:
“A journey of thousand miles must begin with
a single step. “ Lao Tzu
How to connect with Chinese people?
Here are some tips…
HANDSHAKE NAMECARD SMALL TALK HEAD NODDING
When you are at meetings with Chinese
When you are drinking the tea…
Serve the tea The way to “thank you” Sign to refill the tea
When you are invited to a dinner…
Don’t occupy the seat of host.
Do leave the order to host.
Never place your chopsticks
straight up in your bowl. Never flip the fish.
The most important custom:
Footing the BILL
Do lower the rim
when clinking glasses
Don’t unwrap the
gifts before you leave
General reminders
“MAYBE.”
“We’ll See.”
LUCKY NUMBER!Respect Authority“SAVING FACE”
THANK YOU!

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Understanding China