Consumers in low tier cities to drive online consumption in China : MEC

SHANGHAI - Consumers in low tier cities will be the forces driving online consumption next year, according to ‘Consumption Trends China 2011’, released by MEC today.

One of the reasons behind this, the report says, is there are less shops and products for consumers to choose from in low tier cities.

The survey finds the percentage of consumers who purchase online were higher in third and fourth tier cities than in provincial capitals (second tier cities) in 12 out of 14 provinces surveyed.

Another trend is the rise of cluster-oriented consumption, meaning collective buying will be a more important way for Chinese to shop online.

"The rise of cluster-oriented consumption will give local Chinese brands an advantage over international players, because they have better insights into the culture and psych of the Chinese," said Theresa Loo, analytics and insight director at MEC China. "Local brands can better utilise collective memories, history and local customs as rally points around their offer."

Other trends include low-carbon consumption, renting instead of owning and frugal consumption.

Source: Campaign China

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