William McEwen

Xiaoguang Fang

Chuanping Zhang

Richard Burkholder

<article-ideainbrief class="article-ideainbrief">
 <h4 class="ideainbrief-title">The Idea in Brief</h4>
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  <p>Ever since China emerged from its Maoist cocoon, companies around the globe have been clamoring to do business in or with China. But too many of them don’t understand Chinese companies and consumers. Western executives, in particular, wrongly view China as merely a giant production factory peopled by eager, engaged workers—or a giant, monolithic population starving for basic consumer goods. The consequences? Western companies risk stumbling badly when they try partnering with Chinese firms or selling their wares to Chinese consumers.</p>
  <p>How to avoid these risks? Develop an accurate portrait of who the Chinese people really are and how they’re changing—so you base strategic decisions on facts, not myths. And the facts may surprise you. For example, contrary to most Westerners’ beliefs, Chinese workers want more than just a job and salary: they desire recognition for their efforts and opportunities to grow. And Chinese consumers want to do more than just clean their homes and cook their food: they yearn to tantalize their tastes and to be seen as <em>au courant</em> in their choice of products.</p>
  <p>By replacing misconceptions with facts, you deepen your understanding of what Chinese people <em>really</em> want. And you develop business strategies that successfully meet those demands—before your competitors can.</p>
  <p>The Idea in Practice</p>
  <p>To successfully do business in or with China, acquire accurate information about the country’s workers and consumers.</p>
  <h2>Workers</h2>
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  <h2>Consumers</h2>
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   <img src="/resources/images/article_assets/hbr/0603/R0603D_2.gif">
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</article-ideainbrief><p>Ever since China began to emerge from its Maoist cocoon by welcoming foreign investment, the torrid pace of GDP growth in the Middle Kingdom has been fascinating companies around the globe. During the past ten years, that fascination has increased, giving rise to unclear and even conflicting ideas about what it means to do business in or with China.</p>

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<p><span class="reprint">Reprint: R0603D</span></p>
<p>For the past three decades, the torrid pace of GDP growth in China has fascinated companies around the world. Western companies, in particular, have viewed the Middle Kingdom as a production powerhouse, a multinational marketer&#8217;s dream come true, or an increasingly capable competitor in branded goods marketing. But are those views grounded in reality?</p>
<p>To find out, the Gallup Organization undertook an ambitious ten-year, nationwide survey of Chinese consumers and employees. The group found that many of the perceptions held by companies outside&#8212;and even inside&#8212;China are inaccurate. Specifically, the findings belie at least four commonly held notions. The first is that the Chinese people, unmoored from collectivism, are now focused chiefly on working hard and getting rich. The second is that the Chinese workers now flooding the factories and offices of large cities are highly ambitious and actively engaged. The third is that the new prosperity in China allows consumers there to buy much of what they want. And the fourth is that there remains an endless hunger for household basics.</p>
<p>Indeed, the survey found that most Chinese citizens are more interested in expressing their individuality than in getting rich. It also showed that Chinese workers are not as engaged by their jobs as the world might think. What&#8217;s more, with the average citizen making less than $1,800 per year, only the affluent have extra money to spend. Finally, the average Chinese consumer is more interested in buying luxury and entertainment items than in purchasing basic household goods.</p>
<p>The Gallup survey provides much-needed scope and depth of hard data documenting the Chinese consumer&#8212;giving policy makers and executives the tools to manage the opportunities and challenges in China.</p>

Inside the Mind of the Chinese Consumer

Reprint: R0603D For the past three decades, the torrid pace of GDP growth in China has fascinated companies around the world. Western companies, in particular, have viewed the Middle Kingdom as a production powerhouse, a multinational marketer’s dream come true, or an increasingly capable competitor in branded goods marketing. But are those views grounded in reality? To find out, the Gallup Organization undertook an ambitious ten-year, nationwide survey of Chinese consumers and employees. The group found that many of the perceptions held by companies outside—and even inside—China are inaccurate. Specifically, the findings belie at least four commonly held notions. The first is that the Chinese people, unmoored from collectivism, are now focused chiefly on working hard and getting rich. The second is that the Chinese workers now flooding the factories and offices of large cities are highly ambitious and actively engaged. The third is that the new prosperity in China allows consumers there to buy much of what they want. And the fourth is that there remains an endless hunger for household basics. Indeed, the survey found that most Chinese citizens are more interested in expressing their individuality than in getting rich. It also showed that Chinese workers are not as engaged by their jobs as the world might think. What’s more, with the average citizen making less than $1,800 per year, only the affluent have extra money to spend. Finally, the average Chinese consumer is more interested in buying luxury and entertainment items than in purchasing basic household goods. The Gallup survey provides much-needed scope and depth of hard data documenting the Chinese consumer—giving policy makers and executives the tools to manage the opportunities and challenges in China.

Inside the Mind of the Chinese Consumer

Summary.

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