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Executive Briefing: Retail & Dining
Chinese Consumer Insights for Marketing Executives

 

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Q2 2012

Respondents Surveyed
6/4 - 6/15/12

Chinese

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  Economy
  Grocery
  HBA
  Apparel
 
Electronics
  Dining  
 

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InsightCenter ProsperChina

 U.S. Consumer Insights:

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Insights from the ProsperChina™ Quarterly survey of over 16,000 Chinese Consumers ages 18-54 provide unique knowledge to identify opportunities in the evolving Chinese marketplace. Visit the ProsperChina.com website.

 

Talking Points:
- With faltering economic confidence, 90 day spending plans lay on shaky ground

- Walmart continues to lead in grocery...could customer service be Carrefour’s weakness?

- Watson leads in Beauty; Watson Shoppers lead in spending

- Budget conscious apparel shoppers turn to Taobao.com for wardrobe updates

- Electronics: Guomei remains on top; #2 Suning sees YOY consumer share increase

- KFC is fast food leader

 

 

 90 Day Outlook

With confidence in the economy faltering, the likelihood of strong consumer spending over the next 90 Days looks shaky at best. According to the ProsperChina™ Diffusion Index (the percentage of consumers planning to spend more in a particular retail category over the next 90 days minus the percentage planning to spend less), consumer spending intentions for most categories decline quarter-over-quarter. The lone bright spots? It appears that Chinese Consumers may be adding to their closets over the next 90 days as the spending outlook for Children’s Clothing, Women’s Casual Clothing, and Men’s Casual Clothing is on the rise from last quarter and last year:

Retail Merchandise Categories - 90 Day Outlook
(Q2 2012 compared to Q2 2011 and Q1 2012)

90DayOutlook

With the percentage of Chinese Consumers saying they are focusing on needs over wants and exercising practicality in purchasing on the rise year-over-year, expect consumers to stick to their budgets this quarter.

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 Grocery

Walmart (14.7%) and Carrefour (10.9%) continue their dominance in grocery as the top two stores budget conscious consumers shop at most often. Though Carrefour remains a close second, Walmart has increased their share over the past three years while that of Carrefour has declined:

Grocery

Perhaps contributing to Carrefour’s consumer share is below average service...although Carrefour Shoppers are more likely to cite price (53.1%) and location (57.5%) than Walmart Shoppers (49.2% price, 50.8% location) as reasons for shopping the store most often, they are less likely than Walmart Shoppers to list quality (41.1% vs. 49.9%) and service (23.8% vs. 31.2%).

For more complementary insights into why Chinese Consumers shop a particular grocery retailer most often, download the ProsperChina™ Tablet App, install the Apple® Web App or register for the online ProsperChina™ InsightCenter™.

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 Health & Beauty

This quarter, Walmart also maintains their lead over Carrefour as the store shopped most often for health products such as medicines, toothpaste, and lotion. Up from 12.2% in Q2 2011, 13.3% of Chinese Consumers now inducate they shop Walmart most often, compared to the 11.4% that shop Carrefour (vs. 13.4% in Q2 2011). DaRunFa (9.3%), HuaLian (6.2%), and Watson’s (5.3%) round out the top five.

Despite its top spot in grocery and health, Walmart sits at #3 in beauty...18-54 Chinese Consumers continue to be most likely to head to Watson’s (15.3%) for their beauty (i.e. skin care, perfume, makeup, etc.) fix, while Taobao.com (14.9%), Walmart (6.0%), Avon (6.0%) and Carrefour (4.7%) follow. Also noteworthy is that average monthly spending in this category is continuing to rise, with the average beauty shopper spending 146.4 RMB a month...shoppers of Watson’s, Walmart, and Avon, however, spend more:

Beauty

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 Apparel


With the 90 Day Outlook for casual clothing improving from last quarter and last year, expect fashion savvy Chinese Consumers to head to Taobao.com for wardrobe updates...the ecommerce leader is shopped most often by 1 in 5 (21.9%) Adults 18-54, while Parkson (5.5%) and Walmart (3.8%) follow.

Note, though, that apparel shoppers will continue to look for quality and good deals...the majority say familiar labels are important to them when buying clothing (67.0%) and that they usually or only buy clothing when it’s on sale (58.0%).

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 Electronics

In Q2 2012, Guomei continues to lead the electronics category with 31.4% shopping there most often, flat from Q2 2011 (31.5%) and down slightly from Q1 2012 (32.4%). 25.8% head to second-place Suning, whose consumer preference share has increased from one year ago (22.5%) but remains flat quarter-over-quarter (25.4%). Walmart (3.1%), Five Star Electronics (2.9%), and SanLian (2.7%) round out the top five.

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 Dining Out


In an average month, Chinese Consumers dine at Fast Food restaurants an average of four times, spending 57 RMB per trip.  KFC continues to dominate the fast food arena with 31.5% of Adults 18-54 dining there most often, while McDonalds (13.0%) and Pizza Hut (6.7%) continue to round out the top three. Notably though, consumers have different reasons for eating at these restaurants most often:

Reasons

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The ProsperChina™ Quarterly provides insights on Chinese Consumers between the ages of 18 and 54 years old.  This group of digitally connected consumers represents a large, rapidly growing market for luxury and everyday brand usage.  They offer high potential for sales in other categories and markets.  This 28th edition reveals the economic outlook, lifestyle, and media consumption of Chinese Consumers.   16,553 Adult respondents ages 18-54 completed the 2nd Quarter, 2012 survey fielded June 4, 2012 – June 15, 2012. Margin of error is +/- 0.77% at a 95% confidence level.

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© 2012, Prosper®