Understanding China´s Wealthy - created from Mind Map

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Big picture, Gathering and Evaluation of Data, Summary

FACTS • 2015- 4th largest concentration of wealthy (4.4 million) •Chinese consumer purchase 60% of the LG in China • 4 richiest cities: Shanghai, Beijing, Guangzhou, Shenzhen •Wealthy in these four cities are more conservative and focused on their families •Low migration to other cities •80% of wealthy is under age of 45---less knowleadgable about luxury brands •Chinese wealthy care about: quality, material, design, craftsmen • 52% trust foreign brands • 77% of them watch TV •17% of household income is to be spend on dining out •10 % on outdoor activities • The need to feel unique and secure • Seven segments of wealthy: Luxuriant, Demanding, Flashy, Urbane, Climber, Down to earth, Enthusiast •Fats growing cluster: Climbers, Down to earth • Flashy and Enthusiast enjoy showing off, attached to their favourite brands • Luxuriant+ Urban: less showing off, want the best of the brands, more loyal: attributes and service • Demanding: less showy, comparing prices, no taste for LG

Feelings The chinese wealthy market has different background than western, people are younger but still their age is not siginificant factor. Prestige, quality and conservatism seems to be rooted in their decision making. Young generation is eager to learn more about brands and choose accordingly uniqnese which can be achieved through purchasing a luxury good. Still price is many times significant factor.

Diificulties: great differencies among wealthy chinese costumers behaviour, conservativity when spending, disproportianility of wealth: 3/4 of wealthy population will arise outside metropolises, low loyalty to brands,redesign of campaigns for chinese market, customers easily affected by advert , blogs, internet and by PR

POSITIVES: Insight into wealthy chinese purchasing behaviour, decision making, spending patterns, preferences, alocation. Depth analyses of different segments of chinese wealthy in order to prevent marketers from stereotypizing.

Creativity: article brings information which can help to solve problems in black hat. Many prognosis can be controlled as long as they were forecasted for year 2014-15, our suggestion: chinese wealthy are very pro-foreign brands oriented therefore companies form europe or usa have competitive advantage. Brands shall be concerned to speak the truth because many chinese wealthy travel abroad in order to purchase the goods so they can compare quality and design in other countries. Also loyalty is a topic to be developed upon upcoming years.Since chinese people are genuinly interested in quality and the way how the things are produced, we would suggest marketing activites which would promote quality by showcasing of production, or maybe even organize trips to studios where are the products designed and produced. Many franchises can be open within the areas with high density of rich people.