Selling to China's diverse 1.34 billion has long been a challenge for many companies, but the difficulties are mounting as China's population of consumers divides even further along class lines.
mounting:逐渐增加,爬上,装备
According to new research from consultancy McKinsey & Co., a dichotomy is widening between a group of wealthier, younger consumers who want indulgent products that express individuality and a group of poorer consumers who are just now beginning to buy goods they want, not just those they need for basic living.
consultancy:咨询公司,顾问工作 dichotomy:分裂分歧,二分 indulgent :放纵的,宽容的,任性的
A set of big-city shoppers those with annual incomes of more than 106,000 yuan ($16,000) and who are increasingly driven by emotion in buying products is poised to become mainstream, making up 51% of the shopping population by 2020, a surge from 6% in 2010, according to the report. The less affluent group, including those who live in smaller cities and have household incomes of 37,000 yuan to 106 ,000 yuan ($5,900 to $16,700), will shrink to 36% of shoppers, down from 82% two years ago, McKinsey predicts.
be poised to:信誓旦旦,准备就绪 surge:激增,汹涌,大浪,颠簸 affluent:富裕的,丰富的,流畅的,富人
The consumer rift has significant implications for business leaders, who will now need to split their sales strategies, creating more diverse products and sub-brands to cater to the segments, the report said, adding that the once-successful strategy of using umbrella products to appeal to all shoppers across the country may no longer work in China.
rift:断裂,裂开,分开 implication:含义,暗示,牵连,卷入 cater to:迎合,为...服务
'Complexities are increasing,' said Max Magni, a principal at McKinsey & Co. China's 1.34 billion shoppers have always varied by region, with the southerners preferring liquid soap to the northerner's bar soap, and the brands that have succeeded have catered to those differences, Mr. Magni said, adding that it will be more important as brands face increased competition in China.
principal:委托人,当事人,首要的
Because the more sophisticated shoppers are increasing in number, their opinions and shopping habits are increasingly important. Marketers need to take note that buying will become more emotional, the report said. In a survey of 10,000 consumers in 44 cities, 23% of the more affluent, soon-to-be-mainstream urban shoppers said emotional benefits were a key factor in their shampoo purchases, compared with 14% for the lower-income consumer. Mr. Magni said mainstream consumers look for brands that make them feel happier or boost their social status.
Brand loyalty will grow, with 40% of the soon-to-be mainstream consumers saying they will only buy cellphone brands they already prefer, in comparison with 28% of the lower-income shoppers, the report said. Reliance on the Internet for information will be critical, too, with 79% of the mainstream saying they get product information on social media and find it credible, compared with 49% of lower-income mass consumers.
Though it doesn't specifically mention China's wealth gap, The McKinsey report comes on the heels of new data that suggest the yawning chasm between China's rich and its poor is even wider than previously thought. The top 10% of China's population controls 56% of the country's income, according to a 2011 survey of more than 8,000 households led by Gan Li, a professor at China's South Western University of Finance and Economics and Texas A&M University in the U.S.
on the heels of:紧跟,紧随..之后
While many economists had previously assumed that the Chinese households were holding back their consumption to hoard cash for a rainy day, Mr. Gan's study suggests that they aren't buying for a much simpler reason: They don't have the cash to spend in the first place.
hoard:贮藏,积聚钱财 hold back:隐瞒,退缩,抑制,阻止