So in our lecture, I have mentioned
something about Chinese consumption experience.
I hope you can share your experience with us today.
So I'm going to start off with asking you a few questions.
So in our lecture, we mentioned China
consumers their preferences and the choices
are usually not very consistent.
They sometimes choose something that
they might not actually prefer,
do you observe that with Chinese consumers?
This is interesting since you are in the lecture because I studied economics
when I was in University and one of my favorite theories
‘reveal preference’ means you you reveal your preference in your actions.
So the normal thing, you rightly say so,
you normally reveal your preference in your choice;
but then I think the choice also talking about the utility curve.
Each one has different utility and hence,
you know, I think the utility affected us for many things.
One is you you genuinely wanted to buy it
or take, consume that particular product.
But it also be affected by many many
factors, for example, the peer pressure.
Everyone likes that particular black sports car and you like the white one
and because you feel pressurized because it seems very trendy to buy that,
so you you actually got no choice.
So, you know, it really depends on individual utility.
And for consumption in China is especially is a very complex topic
because it's a really huge market
and in fact every consumer in different province
or even different city, it will be different.
For example, the consumers in Shanghai,
their choice is different from the consumers in Guangzhou
and they will be different from Heilongjiang.
So they're very diversity; it’s a big diverse sector.
And in fact I think this also make it very interesting
to explore the consumption in China.
And hence, like for example, I give you example is like -
I recently we have some friends like doing some property sale.
They have some really nice property in Australia - in Brisbane Gold Coast.
So, you know, we thought that really great, Brisbane Gold Coast, good value.
But it's … to Hong Kong when they're doing this sale in Hong Kong,
it's really popular. But then because
everyone knows Gold Coast and knows its lifestyle.
But then when they’re actually doing it in China,
so it's a bit less of that because everyone say, 'Oh. I want Sydney. I want Melbourne.'
And then if you go further north in China,
even less [sic] remote because they view that it's more importantly it’s a big city.
So when so it’s really big diverse public.
We have to see where we're talking about that particular location.
Alright. So, as you mentioned, because China is so big
and the diversity makes it even harder for for the choices to be predicted.
So do you think that in China as a marketer,
do you think that is extremely difficult?
So if there's no way to predict how the consumers will act,
what kind of suggestions will you make for people doing business in China
or selling to Chinese consumers?
Because sometimes it's so difficult to predict their choice.
It is. But I think the number rules in sales.
I think it always applies.
It’s a golden rule is ‘know your customer’ and this is really important.
This depends on which market you want to sell in and
and then when you target the market, the customer needs,
then you actually search for the product
and also search for the way that you promote.
For example, if you want to sell to,
now obviously the the one of the biggest hit range is 25-35, the below 35,
the young, you know, energetic, want to consume.
And you want to sell to that particular class or later on the middle class.
And those particular, you need to know
where they normally access their buying information.
Of course, those sector at this moment because it might change next year or
the year after, they are they really like to search online.
So when you do a search online,
then you have to think of ways that how to appeal online.
And also this sector, they actually obviously like brand, like luxury,
but they may not pay that much.
So what we say this particular sector
or they probably will be the affordable luxury.
That's the term, the new term in China - ‘affordable luxury’.
They want luxury but they want, they willing to pay, but not like that much.
Obviously, at the other extreme is that
they will pay for the very high-end luxury
and that's where they will shop overseas
for the really the big brand and then they
also will pay more for this brand item rather than non-brand.
And and and that's why in China now, you you have to really know the customers,
which market you want to sell for, and then how to position your product,
and then think of the marketing plan.
And I don't think there’s a formula fits all.
And it’s more importantly who you want to target.