COUNCIL ON CHINESE CONSUMER DEMAND SHIFTS

Transcription

1 COUNCIL ON CHINESE CONSUMER DEMAND SHIFTS An invitation to participate in an exclusive research working group of senior executives. You will gain insights into the most significant questions about how Chinese consumption will grow and shift over the next decade, the characteristics of the evolving opportunity set, and the requirements and key success factors for capturing future opportunities across investment, strategy, operational, and other business dimensions. The forum will be co led by The Conference Board s China Center for Economics and Business and The Demand Institute, which is jointly operated by The Conference Board and Nielsen. Copyright 2015 The Demand Institute and The China Center for Economics and Business

2 Demand Shifts are the large scale migration of consumer spending to products and services that better address consumer needs and desires. These shifts are driven by one or more trends or events including: technological change, demographic trends, economic events or trends, institutional or cultural change, or shifts in resource constraints. In China it would difficult to overestimate how much consumer demand has been shifting for the past three decades. China presents a large, high stakes consumer market where there continues to be significant uncertainty around how consumer demand shifts will play out over the next 5 10 years and beyond. Against that backdrop, the Chinese government has stated, and most experts agree, that transitioning from investment led growth to consumption led growth is the key to the success and sustainability of China s next phase of economic development. The success of this momentous transition is unarguably one of the biggest global economic questions of the next decade. Despite the plethora of discussion and data that is circulated about Chinese consumers, we still lack adequate measurement of Chinese consumption today even for aggregate categories. Credible granular data regarding current consumption patterns or any robust projections of segments or future growth is non existent. This gap in our understanding is significant, as the dynamics of China s transition to consumer led growth are highly uncertain. Several concerns about China s economic future are actively discussed, including the recent Chinese GDP growth slowdown and the growing debt burden of government and corporate institutions in China. Yet China s economic landscape is also highly varied, and the opportunity for consumption growth is very different across the country s 344 cities, many boasting the populations of country markets elsewhere. Implications for multinational and local businesses in China are manifold. The China Center and The Demand Institute are creating a new research working group to respond to the need among senior executives of consumer facing businesses in China for an informed, independent perspective on how Chinese consumption is likely to grow and shift, and what the implications of plausible future growth and shift dynamics will be for their businesses. The Council on Chinese Consumer Demand

3 Shifts will respond to the most significant questions that business leaders have on this topic today, including: How will Chinese consumer demand grow and evolve in size and behavior, and what will be the opportunity set for my business? Where should I be investing location and segment wise, and how should investment be optimally calibrated? The Council on Chinese Consumer Demand Shifts will provide a private forum for c level executives to access and discuss forward looking insights, both data driven and experiential, on Chinese consumption patterns and how they will likely shift and evolve over the next decade. Council members will support an ongoing research program, have access to exclusive data resources, and will have the opportunity to help shape the research agenda and interpret research findings. The Council will be China based and meet in person twice annually with China Center and Demand Institute leadership in a full day meeting with optional dinner the evening prior. Each 12 month cycle will include one area of research program focus. The research leadership will provide regular updates to Council members throughout the course of each program cycle. These updates will come in the form of conference calls and webcasts at least once per quarter, as well as monthly briefs that provide insight on a particular issue. Benefits for Council members will include: A synthetic view about how Chinese consumer demand is growing, evolving, and potentially shifting, and the fundamental drivers shaping growth and change, including the intersection of regulatory and policy trends, demographics, and other factors and influences; High quality information and insights focused on one specific issue each year, such as the future of e commerce in China, or the implications on demand of changes in Chinese household income and wealth inequality, with topics that are chosen in collaboration with Council members and Council research leadership;

4 A c level peer and experience sharing network with a common interest and expertise in understanding and optimizing the opportunity to capture consumer demand growth in China; A range of content: including data visualizations, data sets, reports, and presentations, for use at the most senior levels both in China and at global headquarters, and wherever the information is needed within the member company; Access to experts on the research team and at the China Center consumer market developments and changes in the Chinese economy and business environment. Each member organization will contribute 40,000 USD per year if also a China Center or a Conference Board global member, and 55,000 USD per year otherwise. Each member will be entitiled to one Council seat. Organizations have the option to contribute at the 200,000 USD per year level, and will be recognized as Founding Members. Founding Members will have the opportunity to host private briefings in China and globally at which Council research experts will present and discuss findings from the Council program. Questions about the Council can be directed to: David Hoffman, Managing Director, The China Center for Economics and Business, David.Hoffman@conference board.org (China) Louise Keely, President, The Demand Institute, Louise.Keely@demandinstitute.org, (United States)

5 Potential Council Programmatic Focus Issue: The Future of E Commerce in China Central Questions to Address: What is and will be the real rate of growth of e commerce in China, overall and compared with retail sales as a whole? How will e commerce growth vary across consumer categories? Across regions? Across income and demographic groups of consumers? What is the role of e commerce is the broader impact of digital technologies on demand? What are the domestic and international opportunities for businesses to serve Chinese consumers via e commerce? How will the growth and nature of e commerce in China affect the retail system overall? o How will the path to purchase shift? o What are the implications for advertising? o How will the payments systems change? o What are the implications for distribution and logistics to serve consumer demand? ABOUT THE DEMAND INSTITUTE The Demand Institute illuminates how consumer demand is evolving around the world. We help government and business leaders align investments to where consumer demand is headed across industries, countries, and markets. The Demand Institute is a non advocacy, non profit organization that is jointly operated by The Conference Board and Nielsen. ABOUT THE CHINA CENTER The Conference Board China Center provides relevant, practical and readily useful business and economic insights and information to senior executives of member companies with a significant strategic interest in China. Our insights are informed by pioneering local economic and business research, formulated by our thought leaders in China and around the world, and delivered through our exclusive Conference Board events, publications, indicators, and peer group CEO Council sessions in China