customer behavior in china

Since China is a collectivist society where groups and family values are preserved, this ideology is closely linked to the buying behaviors of Chinese consumer. When they buy products in the market, they are more likely to buy some for their close friends and relatives. However, this trend is changing and is going towards individualism which may cause the emergence of “me” generation.
For the past decade, Chinese consumers were not fully aware of the foreign products other than “made in China” products. They are becoming more sophisticated and increasingly caring more about quality instead of price. Their preference for domestic goods has dropped from 78% to 67% in the last five years and been declining faster among young, the affluent and the urban. Moreover, preference for foreign goods, especially European brands has rise from 19% to 22%. Even, the suppliers have problems in meeting the growing needs of quickly expanding companies.