Looking to tap into a huge market to expand your product and service? Look no further than China.
China has one of the largest concentrations of middle class consumers- to the tune of over 600 million. These consumers are at the top of their game when it comes to innovations, and won’t settle for anything less than the best.
This especially applies to the Gen Y’ers and millennials within the bunch, who are hungry for innovations, and are particularly big on making online purchases. Sure, we are all big on it, but the Chinese are in a completely different league. Most of them are all about making purchases on their mobile devices, and successful Chinese companies such as Alibaba, WeChat, and JD.com took notice early on. They started supporting mobile payments long before the launch of Apple Pay, starting at 2009. Little by little, users became extra dependent on their mobile devices for all types of transactions, from accessing bank accounts, to paying bills, to money transfers. The volume of transactions is over double that of Amazon.
According to Forbes, global brands are beginning to speed up their innovation, exclusively to appeal to Chinese consumers.
British fashion brand Burberry has kicked-off a new trend called “show-now, shop-now.” During New York fashion week last month, it live-streamed its fall fashion show on WeChat. Chinese consumers could purchase Burberry’s fall collection immediately on the app while they watched the show.
The Chinese appreciate all innovations- they don’t necessarily have to be technological breakthroughs. It simply needs to be a fresh idea that creates value for the end-user, while also making money. That explains why Chinese smartphone makers such as Huawei, Oppo, and Vivo are actually faring better than Apple in China (and is on the road to beating Apple in India within 3 years.)
The demand for innovations by the Chinese people led to the government realizing that it is the best way to achieve further growth. As such, they are looking to become a innovation-driven economy by 2020. It just goes to show that the power of hundreds of millions of consumers in China is very real and quite the driving force.