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 consumer demand 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 and operational dimensions. The forum will be led by The Conference Board s China Center for Economics and Business in collaboration with The Demand Institute, which is jointly operated by The Conference Board and Nielsen. Nielsen is a founding member of the Council. 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, for example: technological change, demographic trends, economic events or trends, institutional or cultural changes, or shifts in resource constraints. In China, it would be difficult to overestimate how much consumer demand has been shifting for the past three decades. China presents the second largest consumer market globally, where stakes are high and there continues to be significant uncertainty around how consumer demand will evolve over the next 5-10 years and beyond. But one certainty is unarguable: competitive intensity will continue to increase as more and more foreign brands enter the market and as Chinese brands become more and more competitive. Despite the plethora of discussion and data that are circulated about Chinese consumers, we still lack adequate measurement of Chinese consumption today, even for aggregate amounts and categories. Credible, granular data regarding current consumption patterns, especially on per capita bases, or any robust projections of segments or future growth, are non-existent. Against this 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 unquestionably one of the biggest global economic questions of the next decade. And yet, the timing and pace of such a transition, and the extent to which marketization forces will be allowed to drive the change, are called into question given recent economic events in China. This gap in our understanding is thus significant. Many longer-term concerns about China s economic future are also actively discussed, including the recent Chinese GDP growth slowdown and the growing debt burden of government and corporate institutions in China. China s economic landscape is also highly varied, and the opportunity for

3 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 is creating a new research working group and peer-exchange platform 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 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? How are consumer values and priorities evolving with respect to experience base, travel, social developments, and regulatory influences? 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 or could 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 of the program and interpret research findings. Each 12- month cycle of the program will include one focal topic of research, alongside ongoing, regularized products that generate insights into economic, social, policy, and other developments shaping the consumption environment. 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 an optional, informal dinner the evening prior. The

4 research leadership will provide regular updates to Council members throughout the course of each program cycle. Benefits for Council members will include: A synthesized 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 with particular emphasis on one specific focal issue each year such as the future of e-commerce in China, or the growth potential for Chinese household financial services and cross-industry implications with the topics chosen in collaboration with Council members and Council research leadership; 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, based on inputs including a major proprietary consumer survey each year focused on the Council s chosen focal research issue, insight based on relevant Nielsen market and other public and private data sources on the economy and consumer markets. Content will include data visualizations, reports, and presentations, for use at the most senior levels, both in China and at global headquarters or wherever the information is needed within the member company; Access to experts on the research team and at the China Center to discuss consumer market developments and changes in the Chinese economy and business environment. Each member will be entitled to one Council seat for the biannual Council sessions. Interim working group meetings and brainstorming sessions may permit multiple attendees per member depending on the venue capacities. The Conference Board, of which the China Center and Demand Institute are both divisions, is a nonprofit organization. All funding contributed by Council members will go toward supporting the research and programs done for the Council. The annual consumer survey will be a major expenditure, which Council membership will need to fully fund.

5 Questions about the Council can be directed to: David Hoffman, Managing Director, The China Center for Economics and Business, (China) Louise Keely, President, The Demand Institute, (United States) Potential Council Programmatic Focal 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 product categories? Across regions? Across consumer segments, including different income and demographic groups? What is the role of e-commerce in 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? How will the path to purchase shift? What are the opportunities for increased consumer engagement, including advertising, marketing, and connecting with other aspects of consumers lives? How will the payments systems change? What are the implications for distribution and logistics to serve consumer demand?