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Market Research in China

Market overview of China

China has the second-largest population in the world with approximately 1.4 billion people, following India which has recently overtaken it. It is also home to the world’s largest city, Shanghai.

Economy

China is often nicknamed the ‘factory of the world’ as 30% of its population works in the manufacturing sector, accounting for 44% of its GDP. However, in recent years, modernization has allowed the tertiary sector to grow rapidly. This has resulted in 36% of the workforce being employed in the services sector, which now contributes 46% of the country’s GDP.

Consumers

Mobile payment platforms – WeChat Pay and AliPay – are the norm in China. As a result, purchase behavior has shifted toward convenience and efficiency, with paying by cash becoming less common. With increasing disposable income, consumers – especially the younger generations – are more willing to spend than in the past.

Market Research in China

Due to the huge geographical and population size of China, there are significant cultural differences in different parts of China. There are also different dialects in different regions of China, which can sound quite different from one another. Conducting market research in China can be very different for different parts of China as the behavior of consumers and the way of conducting interviews varies between cities. Hence, the results of conducting research in one part of China cannot be used to generalise the whole of China.

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