Apparent low consumer insight, evident (by the words) inside out thinking, and a bit of lyricism leads to this.
: 
: 
: 
After a couple of times in China becomes obvious why China is growing so much and will probably become the world’s most rich nation in many aspects for the next years to come. Its booming cities are amazing. Shenzhen was a immense field 30 years ago, today is one of the biggest cities in the world threatening the power of Hong Kong as a business center within the region. Probably your computer, phone, mp3 player, chair and many other items you’re touching at this moment came from Shenzhen. Guangzhou which is nearby, Dongguan, Tianjin, Chongqing, Chengdu, etc, are all cities which are probably unheard in the west but seriously can become more and more obvious to all, approaching to be powerful business and innovation centers equivalent to a New York or Tokyo. Beijing is the political capital, Shanghai the best place to do business, and both represent now the most populated urban areas in China. All these cities are touching the sky with skyscrapers and spreading fast – this is the evidence of development.
A feature that in my opinion is one of the greatest contribution to the development of China is their infra-structure. I recently did a journey within the South of China expressway, and I must say that the quality of the roads and infra-structure I traveled resembled a European one. Three lanes, well signalized, no bumps, correct traveling speeds. In the last decades China smartly invested in infra-structure to develop a range of regions and approach them in such a vast country. It has nowadays a well completed network of trains, bus companies spread throughout the territory, and a expressway which is already the world’s second biggest after the US – this also explains why China is growing and semi-prepared for its growth.
Though, it also meets huge challenges. The pollution issue is a big one. Several cities are under such a haze in the air that you’re unable to see 100m in front. Recent born babies are even being affected physically by these pollution levels in the north. Urban population is expected to continue growing and infra-structure as to meet this growth. Social unrest by the gaps between social classes and typical city life problems are happening more frequently and China is still seen as not ready for this types of challenges. Nevertheless, keep an eye on China, is going to grow further at the same time the counterparts in the west seem – steady.
: : :
After reading an interesting article within the FMCG industry, I have gathered key ideas and crossed together my perspective to highlight three short facts vs actions on managing the current downturn in this industry.
Fact 1:
Difficult and unstable economic conditions have driven consumers to re-evaluate old shopping habits and brand loyalties.
Action: develop new and constant updated insights on your market and assess clearly the dynamic of the new conditions – anticipate and actively engage in change to meet the new perspective and needs of your market. Develop highly targeted marketing and focus on key drivers which directly and effectively meet the demand.
Fact 2:
High price sensitivity and lower demand for high priced goods are contrasting with an increased demand for lower priced goods – mainly, the middle class shifts and swings from top-middle to bottom-middle offerings (Walmart or MacDonald’s are having increased revenues in this period).
Action: Carefully consider changing your pricing tactics or increase your value. Featuring temporary price reductions through multi-pack offerings, re-sizing or bundles, promotions, etc – promote affordability. If not, increase your value by revise key assessments on the consumer value dimensions and developing anticipated, targeted and valuable offerings taking in consideration again the new market dynamics.
Fact 3:
Impulse shopping and discretionary purchases are changing, sliding down as consumer is limiting expenses.
Action: Cross functional activities such as promotion and marketing on POS can provide a bigger incentive for impulse shopping. Highly targeted messages have to be clearly focused on value for money.
: : :
