Do you want to know what drives consumers in urban China? What the existing and rising trends & needs are in China? This Trend report gives you clear answers. It shows you (illustrated by many pictures): - a view of the existing situation in China; - the 4 existing consumer trends; - the 3 rising consumer trends; - a map of the changing Zeitgeist in China The report is based on my observations and many interviews. This file is a PREVIEW, if you like to order the complete Trend Report urban China, go to http://tinypay.me/~eiO5W8N Cost: 300 euro (incl VAT) Peter Heshof

1. Trend report China
7 consumer trends of urban China
Peter Heshof
I use my trend insights to answer your marketing questions

2. Why a Trend report China ?
As Trend watcher and marketing strategist I visit every year a city to inspire
myself. Last year I visited New York. This year I visited Shanghai & Beijing,
because China is modernizing at very high speed and will become the nr. 1
economy in the world. So I want to understand what drives and motivates the
Chinese and what are their existing and future needs as a consumer?
I use my trend insights to answer marketing questions concerning brand
positioning, marketing strategy and innovation. Since 2003 I work for
companies such as Unilever, Sara Lee, Ahold, Achmea, Rabobank, Robeco,
Ziggo and Eneco.
In this trend report I would like to share my observations of the consumer needs
& trends in urban China (Shanghai & Beijing).
My observations are based on my experiences and many interviews.
I would like to thank Chang, Ding, Gerard, Hua, Hugo, John, Joshua, Kang,
Liberto, Maurits, Mei, Mari, Michael, Rogier, Victor, Xu, Youngmei, Zhang and
Zheng for sharing their views.
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3. 4 chapters
1. Existing economical context
2. Existing consumer trends
3. Rising consumer trends
4. Changing Zeitgeist
Peter Heshof 2011© 3

4. 4 chapters
1. Existing economical context
2. Existing consumer trends
3. Rising consumer trends
4. Changing Zeitgeist
Peter Heshof 2011© 4

5. Existing economical context
Need for stability
The CPC, Communist Party of China,
focus is on harmony and will only survive
if the 1.3 billion Chinese people
remain satisfied.
Peter Heshof 2011© 5

6. China First
To avoid the Soviet Union scenario the
CPC has realized that they have to adjust
the political policy to keep their 1.3 billion
inhabitants satisfied.
They follow Darwin's rule; the survivor is
not the strongest but the one that adjusts
best to new situations. So continuously and
small political adjustments, are the key
driver of the survival of the CPC.
CPC gave room to the market, to private
business, to foreign companies and most
importantly they joined the WTO in 2001.
This was the basis for enormous growth of
China in the last 10 years. Becoming the
factory and cash machine of the world.
China’s role in the world is based on an in-
ward looking policy to secure their needs.
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Peter Heshof 2011© Credo: China first! 6

7. China’s focus on growth
To keep the people satisfied
8% economic growth is necessary.
China’s growth strategy:
- Investment in infrastructure, property and
easing company loans
- Focus on export via efficiency and low
currency
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Peter Heshof 2011© 7

8. China’s growth risks
The risk factors for sustainable growth:
- Bubbles: housing market and
company loans
- Increasing inflation
- Increasing gap between poor and
very rich
- Corruption
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Peter Heshof 2011©
Peter Heshof 2011© 8

9. China’s rebalance
China should make a rebalance from an
overinvestment in infrastructure and
property towards raising household income.
- Less dependency on export, more growth
from internal consumption.
- Creation of strong Chinese brands
of high quality.
- From Copy to more Added Value industry.
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Peter Heshof 2011©
Peter Heshof 2011© 9

10. China’s biggest challenge
The art of copying (repetition), low wages and
currency, has made China the biggest factory of
the world.
The Chinese educational system is also about
repetition. The one who repeats the best, the
answers learned, is the hero. But repetition is
based on the existing rules and truth. If you want
to create new views or insights you have to let
go of the existing views and choose a new path.
As Steve Jobs did at Apple, one of the
most admired brands in China.
If China wants to build a sustainable economy of
long term growth, it should Add Value to the
existing copy market. It needs entrepreneurs
who are able to think Out of the existing Chinese
copy box. But in an educational system focused
on repetition, this will be the biggest challenge
for China.
Peter Heshof 2011© 10

11. 4 chapters
1. Existing economical context
2. Existing consumer trends
3. Rising consumer trends
4. Changing Zeitgeist
Peter Heshof 2011© 11

12. 4 Existing Consumer Trends
- Me, my family & I
- Be the best
- …..
- …..
Peter Heshof 2011© 12

13. Me, my family & I
In 1979 the 1-child program started in China.
Besides birth control it also had
an enormous effect on the social structure as it
created princes and princesses.
These only child's are treated like a prince or
princess. As the focal point of their parents they
are often spoiled.
On top of that many parents who work in cities,
leave the children at their village and see them
only once a year.
Besides the risk of getting spoiled, only children
grow up without brothers and sisters. So no
playing, no fights, no sharing and no social
learning as a kid.
This policy creates youngsters who consider
themselves the center of the world. This is
completely different from their parents’
upbringing. They were taught to be humble
and subordinate to the common goal and to their
Peter Heshof 2011© family. 13

14. Me, my family & I
Me & my family First.
The I is different from the western I
I = inner group = core family
The family puts its interest first.
Life is hard in China,
I care about myself and my family,
not about others.
Peter Heshof 2011© 14

15. Be the best
To differentiate myself from 1.3 billion
people I have to be better than the rest.
Or at least my parents want me
to perform better.
Education is about repetition, not
about creativity.
Tiger-mums help you to be the best.
I have a need to perform and
to improve myself.
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Peter Heshof 2011© 15

16. Be the best
In China self development is not about to
be yourself or self actualization.
In China self development is about being
the best, the smartest of your group.
China’s culture is not like in the Apple
commercial Think Different. Where the
crazy ones, the misfits, the rebels and the
troublemakers are glorified.
In China the one who fits best
to the community-standards is glorified.
.
Peter Heshof 2011© 16

17. 4 chapters
1. Existing economical context
2. Existing consumer trends
3. Rising consumer trends
4. Changing Zeitgeist
Peter Heshof 2011© 17

18. The complete Trend report China
Would you like to receive
the complete Trend report, including:
- All 4 existing consumer trends
- The 3 rising consumer trends
- The changing Zeitgeist in China
Go to my online shop:
http://tinypay.me/~eiO5W8N
and order directly this beautiful Trend Report
After payment you will receive the full digital pdf report.
Costs: 300 euro (including VAT)
Extra option: ask for my personal presentation
of the China report, to get all the details.
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19. Het Complete Trend verhaal
Wilt u het complete China trend verhaal horen,
middels een persoonlijke presentatie door mij
op uw locatie &
het complete Trend report ontvangen?
Neem dan contact met mij op:
peter@tobloom.nl
06-18552437
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20. Do you need help to translate these trends to
innovation or brand positioning?
Mail or call me, peter@tobloom.nl +31 6 18 55 24 37
www.tobloom.nl

21. Copyright© 2011 by Peter Heshof
All rights reserved
No part of this publication may be reproduced, stored in or introduced into a
retrieval system, or transmitted, in any form, or by any means (electronic,
mechanical, photocopying, recording or otherwise) without prior permission of
Peter Heshof.
Requests for permission should be directed to peter@tobloom.nl