Friday, October 22, 2010

Companies better in targeting Chinese consumers - Shaun Rein

NINGBO, CHINA - OCTOBER 8:  Workers lay cables...Image by Getty Images via @daylife
It took them a while, but luxury brands are becoming better in targeting the Chinese consumer, especially the young women, says Shaun Rein in CNN. One of the side effects: more work for Chinese models.
"People are savvy now, they dress to impress," said Shaun Rein, managing director of CMR, a company that closely tracks China's luxury consumption. "Everyone knows someone who was a pig farmer who now drives a Mercedes." 
"Companies are no longer saying, 'whatever works at home will work in China,'" Rein said. "Luxury companies want to create an emotional connection with Chinese consumers, show respect and set themselves apart. So they're trying to feature models who Chinese consumers will aspire to."... 
In China, companies are focusing on targeting a younger demographic that is spending their cash at home.
"To increase their sales, companies are targeting younger women, for example, a secretary making $800 a month but hoping to purchase a $1,000 Gucci bag," said Rein of CMR. "They'll save three or four months of their salary to buy an item."

Despite their limited spending power now, experts predict that winning Chinese customers' attention and trust when they are young will pay off.
Much more about the Chinese models in this article in CNN

Commercial
ShaunRein2Shaun Rein by Fantake via Flickr
Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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