Into 2023 – Readiness for China Reopening and Culture Transformation
To Successful Catch the Critical Moment
Welcome to our latest analysis of the Chinese consumer market, where we explore the latest trends and shifts in Chinese consumer behavior. Based on the economic landscape of the past three years and the impact of the pandemic, we’ve compiled valuable insights that will help you stay ahead of the curve with culture transformation.
Grab a cup of tea and join us on this exciting journey of discovering the key drivers of post-pandemic growth in China!
We’ll be offering a perspective on an opportunity by delving into the essence of profound change at the strategic, organizational, and market levels, with the goal of uncovering ways to drive culture transformation and enable successful execution. As you read, you will find :
- Unpacking landscape of key market drivers in China
- Diving into 4 key areas in the Chinese consumer market including Female Economy, Gen-Z, New Luxury, and Experiential Social Commerce
- Mapping out 5 key methods to help you achieve innovative organizations, teams, and forward-looking culture transformation opportunities
Unpacking the Market Landscape of a Post-pandemic China
“China‘s economy is contributing very much to the world.” Daniel Leigh, head of the world economy in the IMF’s research department, said that when China‘s economic growth accelerates, every percentage point increase in China’s growth rate raises the world’s growth rate by 0.3 percentage points. This growth is reflected in China’s emergence as a leading country in multi-dimensional values.
Meanwhile, according to the readout of the Central Economic Work Conference (the Party‘s most important economic meeting, where the top leadership sets the economic policy agenda for the coming year), China will focus more than ever on economic growth in 2023. As part of its efforts to sustain economic growth, the Chinese government will prioritize expanding domestic consumption. Eyes on Chinese consumers, we can see high quality, health, wellness, efficiency, and cost-effectiveness have led their perspective into new consumption behavior and required businesses to evolve innovation strategies for future growth.
As the world’s largest consumer market, and with the economy reopening, there is likely to be a significant increase in consumer spending in China, benefiting a range of retail industries including luxury goods, fast-moving consumer goods, and e-commerce. When we unpack the top categories, we will delve into the key themes of She-conomy, Omnichannel Experience, Gen-Z and New Luxury. By understanding and responding to the preferences and values of these key consumer segments, companies can incorporate these 4 areas into their business strategies and capitalize on the growing demand for products and services that offer value, innovation, and sustainability.
Diving Into 4 Key Areas in Chinese Consumer Market
| Increased Women’s Empowerment and Self-awareness
Chinese women have become a major force in the economy, both as consumers and as entrepreneurs. They are not only the primary buyers but also key decision-makers in spending both for families and themselves.
How brands can capture the trend of SHE-CONOMY?
- Innovation catered to women’s needs: As more women seek to take control of their careers and financial futures, brands that prioritize female-focused innovation are likely to be more appealing to women consumers in China.
- Service for convenience and self-development: With busy lives balancing multiple responsibilities with career and family, women in China are strongly interested in service offers convenient and accessible products to free out their time and energy for self-development and growth.
- Enhance social values: Chinese women are increasingly interested in brands that align with their social values, such as gender equality, diversity, and inclusion. Brands that demonstrate a commitment to these values in their products, marketing, and company culture are likely to build trust and loyalty among women consumers.
- Empathetic marketing: Women in China are more likely to respond positively to brands that use empathetic marketing, which acknowledges and addresses their unique challenges and concerns. Brands that can authentically connect with women consumers through their marketing and messaging are likely to build stronger relationships and loyalty.
| The Hearted Consumption Pattern of GEN-Z
As an iconic group, Gen-Z consumers in China value more authenticity in the brands they support, making it crucial for companies to communicate their values and be transparent and interactive to build multi-dimensional experiences for trust and loyalty among this demographic.
What can brands do to grab the hearts of GEN-Z in the China market?
- On purpose with authenticity and transparency: In the post-COVID era, Gen-Z consumers are increasingly seeking out brands that are honest about their values, supply chain, and social and environmental impact.
- Dynamic customization and personalization: Gen-Z consumers in China have grown up with drastic advancements in data and the rise of original brand, they expect personalized and customized experiences that quickly respond to hot trends and topics in all aspects of their lives.
- Innovation and creativity: Innovation and creativity in products and services are highly valued not only for unique experience and new touch feeling with high-tech, brands they follow with high innovation ability also reflects their own creativity in life and self-growth.
- Social engagement: Gen-Z consumers in China are placing increasing emphasis on social value and are looking for brands that align with their values and actively contribute to social causes in the post-pandemic era. Although communication and key content are still with the online platform.
- Omnichannel experience: Gen-Z in China are accustomed to omnichannel experiences, even if they are not aware of the term. They quickly seek out multiple online and offline touchpoints for new brands and prefer fast purchasing options. In the post-pandemic era, brands can expand the scope of omnichannel to cover more areas.
| Shifted New Luxury Definition
Chinese consumers’ definition of modern luxury has shifted from buying branded goods to creating a personalized luxury experience with a focus on local culture, health, and unique experiences. Additionally, the COVID-19 pandemic has accelerated this trend, as consumers increasingly prioritize health and safety considerations in their purchasing decisions.
How can brands react to Chinese shifted NEW LUXURY TRENDS?
- Focus on health and sustainability: The pandemic has also led to an increased awareness of health and sustainability, which has affected the luxury industry in China. Consumers are now more conscious of the environmental and social impact of their purchases, and luxury brands are responding by incorporating sustainable materials and production methods into their products.
- Localization of luxury brands: Chinese consumers are increasingly interested in luxury brands that are tailored to their specific culture and values. Brands that can successfully adapt to the Chinese market by incorporating local elements into their products and marketing strategies are likely to see success in the post-COVID era.
- Experiential luxury: With the easing of travel restrictions, Chinese consumers are seeking unique and immersive luxury experiences, such as private dining experiences and exclusive travel packages. Luxury brands that can offer these experiences are likely to be successful in the post-COVID era.
| Value Enhancement of Digital Experiences Driven by Social Commerce
As the largest country for social commerce, consumers in China have created a new landscape for digital experiences, where social media platforms are no longer just a place for brand promotion, but also a destination for transactions. This means leveraging emerging technologies such as augmented reality and virtual reality, and developing personalized and customized content that resonates with consumers.
How can brands adapt to the Chinese DIGITAL AGE?
- Seamless integration: Consumers in China expect a seamless and integrated shopping experience across all channels. To succeed in the post-COVID era, businesses will need to ensure that their online and offline channels are fully integrated, with consistent branding, messaging, and customer service.
- Mobile-first approach: Mobile devices are a critical channel for Chinese consumers, and businesses that want to succeed in the post-COVID era will need to adopt a mobile-first approach. This can include developing mobile apps that offer personalized experiences, optimizing websites for mobile devices, and using mobile-based marketing campaigns to engage with customers.
- Augmented reality and virtual reality: As technology continues to advance, businesses can leverage augmented reality and virtual reality to provide immersive and interactive shopping experiences for consumers. This can include virtual product demonstrations, interactive showrooms, and augmented reality features that allow customers to visualize products in their own homes. By embracing these technologies, businesses can create unique and engaging experiences that differentiate them from competitors and drive growth in the post-COVID era.
How SpringPillar Can Help?
These drivers of change require companies to think differently about strategy, marketing, management, and day-to-day operations.
SpringPillar is more than happy to offers customized corporate training programs to work with you and your team to drive the future of China. Through our carefully considered Learn-Do approach, with an immersive and experiential journey, we provide comprehensive coaching and results with a working model and developed an innovative mindset to help organizations capitalize on growth opportunities and stay ahead of change.
To successfully drive culture transformation and unlock the future of China, the following are 5 of our recommended Quick Win offerings:
01 EMPOWERING SHE-CONOMY
How to build Internal growth program to activate women innovation?
In the context of the growing “she-conomy”. Women are a significant and growing group. By fostering a community of women innovators, companies can tap into this valuable demographic and gain insights into their perspectives and priorities.
Through our partnership with Multi Women Community, SpringPillar is helping companies build a community of women innovators by developing initiatives around Innovation Sprints, Lunch Sharing, Women Thrive in Life and Work, and Industry Conviction, with the goal of inspiring and supporting the growth and self-awareness of the next generation of women entrepreneurs and leaders, creating a more inclusive and equitable tech industry for the future.
- Innovation capabilities training
- Innovation workshop for women needs
02 IMMERSE IN GEN-Z LIFE
To deep dive and immersible experience the new changing trends of Gen-Z, there’s no other way better than sitting in the same room to co-create the leading future.
SpingPillar organizes Keynote and Panel Discussion with Gen-Z to create the 2-hour to half-day open discussion program, designed and organized by our expert in each topic for landing insight training into initial ideas. Such as:
03 BEHAVIOUR CHANGES MINDSET
Empower Your Team For Innovation And Creativity
To win the market, you have to win your team and set them for a purpose. It’s clear that with the continuous changes, companies are required to build more capabilities and learning system to better catch the future.
This program is designed to help team members break out of their habitual ways of thinking and behaving, and to explore new possibilities and solutions. By creating a culture of experimentation, your team can learn to take calculated risks, embrace failure as a learning opportunity, and generate innovative ideas that can drive your business forward.
5–8-week insight training program using design thinking, consumer centricity and innovation coaching for all functional teams to increase creativity and market insight capabilities.
04 CONSUMER IMPACT ACADEMY
Innovation is key, but it takes great leadership to turn innovative ideas into real-world results. Embrace leadership innovation today and watch your organization thrive.
A 10-day corporate training program combined with expert knowledge sharing, site and innovation tour, physical presence observation, and ideation workshop, delivered with content capture and future growth ideas.
05 INNOVATION ORGANIZATION AND OPERATING MODEL
A 3–4-week consulting package to review and plan your innovation process based on organizational development and operational model definition.
With our multi-disciplinary expertise in innovation, strategy, and organizational development. We work with clients at L1-7 level to refine the innovation process around 5 dimensions – Culture, Processes, Structures, Resource and Metrics.
By making innovation a way of working and integrating the innovation process into daily operations, an organization can respond quickly to new challenges and opportunities, foster a culture of creativity and collaboration, and increase efficiency and productivity.
It’s challenging yet exciting, with 2023 has started with a blooming spring. At SpringPillar, we believe it is now to get ready for challenges, and it requires more than just motivation and mindset – it involves transforming organizational behavior, processes, and the daily routine of every individual. We not only provide a change plan but also offer tailored insight training to uncover your potential and build your ability to adapt and leverage change at any time.
Let’s chat about how innovative company culture transformation can drive your success. Contact us now, and we’re ready to work with you to uncover your potential!